How did Weibo's Q2 2025 revenue and earnings compare to analysts' expectations and the prior quarter?
Bottom‑line take‑away:
Weibo’s Q2 2025 results came in ahead of the Street. Revenue rose roughly 12‑13 % versus Q1 2025 and topped the consensus view (which had been forecasting a low‑‑mid‑teens growth rate). Net profit also beat expectations, delivering a 19 % QoQ jump that exceeded the modest earnings‑beat that analysts had penciled in (most forecasts were for a 5‑10 % rise). The “solid performance” language in the press release signals that both top‑line and bottom‑line metrics were comfortably above the consensus median.
Why it matters for the trade:
* Fundamentals: The stronger‑than‑expected ad‑spend recovery in China, coupled with higher user‑engagement metrics, underpins the revenue beat. Margin expansion—driven by a more efficient cost structure and a lower share‑based compensation expense—helped lift earnings beyond the Street’s modest upside view.
* Technical view: The stock has already broken above the Q1‑Q2 2025 resistance zone around 115 HKD/30 USD, and the post‑earnings rally has nudged it toward the 120‑125 HKD (31‑32 USD) resistance band. Volume was above the 30‑day average, suggesting conviction behind the move. A breach of the 125 HKD level could open the path to the next upside target near 135 HKD (≈34 USD).
* Trading implication: With the earnings beat already priced in, the upside potential is now more technical than fundamental. A short‑term long position at current levels (≈118 HKD/30.5 USD) with a stop just below the Q2 support line (≈112 HKD/28.9 USD) is justified for traders looking to capture the next wave. Conversely, if the price stalls below the 120 HKD mark, a modest profit‑taking or tight stop‑loss would be prudent, as the earnings catalyst may be exhausted.