Weibo (WB) stock surged 5.11% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results, which surpassed analyst expectations. The Chinese social media giant demonstrated resilience in a challenging economic environment, showcasing its ability to maintain growth and profitability.
The company reported non-GAAP earnings of $0.45 per diluted share for Q1 2025, significantly outperforming the FactSet analyst consensus of $0.38. This represents a 9.76% increase from $0.41 per share in the same period last year. Weibo's net revenue for the quarter reached $396.9 million, slightly above the analyst expectations of $394.2 million and showing a marginal increase from $395.5 million in the previous year.
Weibo's strong performance can be attributed to several factors, including solid execution of its disciplined spending strategy and improved operating efficiency. The company also highlighted its progress in AI product development, particularly the growth of Weibo Intelligent Search. Additionally, Weibo reported steady user growth, with monthly active users (MAUs) reaching 591 million and daily active users (DAUs) hitting 261 million in March 2025. The positive results and ongoing focus on AI integration and user engagement have bolstered investor confidence, driving the stock's pre-market rally.
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