Why Shares of Weibo Corporation Skyrocketed 154% Last Year

What happened

Shares of China-based social-media giant Weibo Corporation (NASDAQ: WB) spiked 154.8% in 2017, according to data provided by S&P Global Market Intelligence, after the company beat analysts' consensus estimates in all of the quarters reported last year and continued to grow its user base and sales.

So what

Shares of Weibo's stock jumped by about 24% between January and late February, after the company released its fourth-quarter 2016 results. Investors were pleased to see Weibo's sales jump 43% year over year, and earnings reached $0.34 per share -- topping Wall Street's estimate of $0.28. Weibo also managed to grow its monthly active users (MAUs) by 33% at the end of the year, all of which added to investor sentiment.

Stock chart on dark background.

Image source: Getty Images.

One of the biggest monthly share-price spikes came in May after Weibo released its first-quarter 2017 results. The company's shares jumped 33% that month on news that Weibo's top line increased by 67% year over year and outpaced the company's own guidance. Investors also liked that earnings were $0.26 per share in the quarter, higher than analysts' consensus estimate of $0.21.

The company released its second-quarter results in August. Sales hit $253.4 million, a 72% jump year over year, and earnings of $0.38 slipped past Wall Street's expectations of $0.36. Weibo also said that MAU's at the end of June topped 361 million, which was a 28% jump from the year-ago quarter. Investors clearly liked this news because Weibo's stock jumped another 30% that month.

Weibo's shares spiked again after the company reported yet another earnings beat in November, but they retreated toward the end of the month, leaving the shares relatively flat between September and the end of 2017.

Now what

Weibo's management expects the company's top line to reach $360 million at midpoint for the fourth-quarter 2017, which would be 69% higher than the year-ago quarter. Investors are already anticipating good things for Weibo this year and have pushed the company's share price up more than 20% in 2018.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Weibo. The Motley Fool has a disclosure policy.