| | | What Do Alibaba, SINA, And Twitter Have To Do With Weibo?
Apr. 21, 2014 9:36 AM ET | 4 comments | About: WB, Includes: SINA
James Sands
Disclosure: I am long FB. (More...)
Summary
- Weibo has a solid deal in place for the next couple of years through its agreements with SINA and relationship with Alibaba.
- Weibo is positioned to potentially become profitable before Twitter, possibly by 2015.
- The company's first trading day price of $20.24/share is not screaming to be bought, yet is intriguing for the long term.
I have been scrutinizing Weibo Corporation ( WB) leading up to the company's IPO for the past couple of weeks. Now that we have a price to base Weibo's value and potential off of, it's time to dig into areas of interest for long-term investors. Twitter, Inc. ( TWTR) is obviously the best company to compare Weibo with as they offer duplicative products and services to users, advertisers and marketers, and platform partners. Equally of interest, investors should think about how the agreements with SINA Corporation ( SINA) and the relationship with Alibaba Group will impact Weibo's business in the near term and future.
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