Yahoo Finance How Weibo Corp. Stock Jumped 12.3% Higher Today
What happened
Shares of Weibo (NASDAQ: WB), a Twitter-like social network operator, closed Thursday's trading 12.3% higher; earlier in the day, the stock had gained as much as 12.8%. Weibo itself posted no news of note today, but the stock was primed to post a big gain as trade tensions between Washington and Beijing appeared to ease up. On top of that, a Fidelity International analyst published a bullish note on Chinese tech stocks this morning, driving Weibo and its sector peers even higher.
So what
Chinese leaders are reportedly talking directly to their American peers these days, with a heavy focus on unsnarling the tariff-tinged trade conflict. Even after today's big jump, Weibo's shares still trade 53% below their 52-week highs due to the trade tensions.
Image source: Weibo.
Now what
Weibo investors are hoping for a quick and clean resolution of the international trade conflict. To be clear, the company is producing a steady stream of strong business results that often leave analyst estimates behind, including 68% sales growth and 88% higher earnings in the most recent quarterly report. If and when the Sino-American situation settles down, Chinese tech companies in general and Weibo, in particular, seem to be poised for some impressive bounces.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends TWTR. The Motley Fool recommends Weibo. The Motley Fool has a disclosure policy.
