Weibo has apparently discovered the "secret sauce" that has eluded Twitter.
Weibo first quarter results (thousands)
Revenue: $199,201 (100.00%)
Sales and marketing: $46,450 (23.32%)
Product development: $47,163 23.68%)
General and administrative: $10,546 (5.29%)
Operating profit (loss): $55,81 (28.04%)
Market cap (billions): $16.9
Twitter first quarter results (thousands)
Revenue: $548,251 (100.00%)
Sales and marketing: $220,339 (30.19%)
Product development: $128,728 (23.48%)
General and administrative: $69,868 (12.74%)
Operating profit (loss): ($40,278) (-7.36)
Market cap (billions): $13.5
From the article you referenced:
According to US market research company eMarketer, social media's share of online advertising in China only accounted for 10% in 2016. That figure was 28% in the United States. However, the advertising market share in China is expected to rise with social media marketing becoming more acceptable, said eMarketer.
While Twitter is generating more revenue from each user, Weibo's cost structure is considerably leaner. Factor in economic and political risks. Bet the trend (Weibo) or bet on the next fix (Twitter)? |
