10 Worst Chinese Stocks to Buy Right Now According to Short Sellers

2) Weibo Corporation (NASDAQ:WB)

Short % of Float (8/30/2024): 21.48%

Number of Hedge Fund Holders: 15

Weibo Corporation (NASDAQ:WB) operates as a social media platform for people to create, distribute, and discover Chinese language content.

On a YTD basis, Weibo Corporation (NASDAQ:WB)’s stock has seen a decline of over ~30% amidst investor concerns over regulatory pressures and the deterioration of the Chinese economy. Short sellers believe that the company continues to face both internal and external pressures, which continue to impact its financial landscape. The persistent growth of operating expenses and marketing outlays for the Olympics, together with investments in content and user acquisition might weigh over its operating profit in 2H 2024. According to short sellers, Weibo Corporation (NASDAQ:WB) might face pressures in its advertising revenue in 2H 2024.

On the other hand, Wall Street analysts believe that Weibo Corporation (NASDAQ:WB)’s continuous investment in AI technology should help the company in sustained recovery. These investments are focused on enhancing content production and commercialization, targeting improved monetization competitiveness and user engagement. Moreover, they believe that the company’s partnerships with Tmall and content marketing solutions should act as key revenue drivers.

Weibo Corporation (NASDAQ:WB) has plans to further strengthen its monetization competitiveness as it continues to focus on hot trends, IPs, and vertical content ecosystems. The company focuses on stabilizing or returning to growth in the broader cosmetic and beauty sector by 4Q 2024. Moreover, the approval of the language model by the government should improve its AI products.

As per Wall Street analysts, shares of Weibo Corporation (NASDAQ:WB) have an average price target of $11.42. As per Insider Monkey’s 2Q 2024 data, 15 hedge funds reported owning stakes in Weibo Corporation (NASDAQ:WB).