Sina Weibo shares some similarities with Twitter. Their revenues are mostly from advertising business, and they offer flexibilities for 140 characters limit and are reported to by acquired.
Twitter’s share accumulative declined by 20% this year. In the meantime, Weibo share increased by double owing to its dominant advantages. The current capitalization value of Weibo is $11 billion, getting closer to Twitter’s at $12.6 billion. Twitter was once assessed at $34 billion for capitalization last year. It faces much pressure from Snapchat, Instagram and Facebook so far.
“Weibo is the only social media platform in China, it doesn’t face pressure from Twitter, Instagram and YouTube”, said Marie Sun. She added:”it seized the developing opportunity as overseas social media platforms have not introduced to China yet”.
Weibo was released in 2009 and split off from Sina.com and became a listed company in 2014. The net profit and revenue in last quarter were beyond the market expectation. Its current share price is 51 times of benefit expectation in 12 months, performances better than Twitter’s.
Weibo obtained 282 million daily active users in June, increased by 33% yoy. Its monthly active users also make Twitter shamed.
In the meanwhile, the advertising revenue of Weibo in Q2 increased by 45% yoy. Alibaba increased its holding of Weibo shares due to the promosing prospect.
Twitter share price declined under its issue price $ 26. The market analysts predicted that the revenue of Twitter in 2017 would be $2.85 billion, while it was predicted at $4.3 billion last year.
It has been reporting that Twitter considers selling itself to solve the users growth difficulties. However, the potential bidders quit offering based on the previous reports.