7 Cheap Social Media Stocks to Invest In

5. Weibo Corporation (NASDAQ:WB)

Forward P/E: 4.96

Analysts’ Upside Potential: 13.10%

Number of Hedge Fund Holders: 15

Weibo (NASDAQ:WB) is a China-based social media platform that allows people to create, share, and discover content online. Weibo Corporation (NASDAQ:WB) operates in two segments: Advertising and Marketing segment and Value-added Services segment. The Value-added Services segment encompasses social platforms, online games, live broadcasts, social e-commerce, and others. The Advertising and Marketing segment delivers an array of advertising customization and marketing solutions.

The company also engages in the provision of online game operations, provision of internet content, and other related businesses. Through the Weibo platform, users can create, discover, share, and consume various kinds of content, including video, photo, text, live streaming, and audio. Despite its other operations, the company’s primary product is the social platform Weibo.

Weibo (NASDAQ:WB) reached 583 monthly active users and around 256 daily active users in Q2 2024. To continue this positive trajectory, it is adjusting its user strategy for 2024, allocating more channel budget to the acquisition and engagement of high-quality users.

The company’s total revenues reached $437.9 million in Q2, of which ad revenues reached $375.3 million.  It has been focusing on merging Weibo’s hot trend products with marketing and advertising demand. These efforts have resulted in its hot trend marketing gaining a competitive advantage by being recognized by several industries and advertisers.

Weibo’s (NASDAQ:WB) primary focus for 2024 is growing user engagement and sales, improving operational efficiency, and bolstering the competitiveness of its content ecosystem. It has maintained close cooperation with handset manufacturers on the channel front, prioritizing promoting user engagement and acquiring high-value users. It is also making further investments to refine its algorithm accuracy and targeting capacity of its business model to create suitable content offerings to its channel users and accelerate their user engagement. Such initiatives are expected to lay an even more solid foundation for monetization. Weibo (NASDAQ:WB) ranks fifth on our list of the top cheap social media stocks to invest in.