We came across a bullish thesis on Weibo Corporation on nVariant Capital Fund’s Substack. In this article, we will summarize the bulls’ thesis on WB. Weibo Corporation’s share was trading at $10.99 as of January 13th. WB’s trailing and forward P/E were 6.28 and 6.32 respectively according to Yahoo Finance.
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. WB remains a peculiar investment case, blending stagnation with latent value. The company’s core operations have shown declining revenues and operating profits, while management has offered little indication of a strategic turnaround.
Despite recent gains, with the stock rising from $7.84 in summer 2024 to $10.14 and paying an 82-cent annual dividend, the business is no longer exceptionally cheap on a cash flow basis, trading around nine times after-tax operating earnings. Shareholder returns appear limited, as buybacks merely offset ongoing stock-based compensation, highlighting a lack of aggressive capital allocation.
Yet, the company’s hidden value lies in its 26.57% stake in INMYSHOW, a $10 billion Shanghai-listed entity, which is carried on Weibo’s books at just $300 million. This creates a substantial net cash value, implying an intrinsic worth of roughly $16 per share, far above the current market price. This embedded asset creates a compelling reason to buy, despite operational mediocrity and management shortcomings.
The juxtaposition of a stagnating operating business against a deeply undervalued strategic investment positions Weibo as a stock that may underperform in the near term but offers a long-term asymmetric risk/reward opportunity. Investors face the tension between the ongoing operational drag and the latent value in its equity holdings, making the case that while short-term performance may disappoint, the underlying net cash value provides a durable floor and a potential catalyst for eventual rerating if the stake in INMYSHOW is realized or revalued by the market. Consequently, Weibo represents a patient, value-oriented play, where patience is required to capture the embedded upside.
Previously, we covered a bullish thesis on Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted the company’s strong AI-driven advertising growth, disciplined cost management, and high-margin Family of Apps segment as key drivers of upside. META’s stock price has appreciated by approximately 10.28% since our coverage due to strong earnings results and accelerating AI integration. nVariant Capital Fund shares a different perspective on Weibo Corporation (WB) but emphasizes the hidden value in its 26.57% stake in INMYSHOW, creating long-term asymmetric upside despite stagnant operations.
