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Weibo Prepares To Price IPO Ahead Of Its Nasdaq Debut

The Chinese microblogging site reported 143.8 million monthly active users, compared with Twitter’s 241 million users.

Weibo Prepares To Price IPO Ahead Of Its Nasdaq Debut
[Image: Flickr user bfishadow]
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Weibo, Twitter’s counterpart in China, is expected to price its initial public offering Wednesday and begin trading on the Nasdaq the next day. If the Chinese microblogging site offers shares between $17 and $19, as it suggested in a regulatory filing earlier this month, its valuation could reach $3.9 billion.

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Ahead of this pricing, Weibo released its financial data for the first quarter of the year, reporting a $47.4 million net loss. This is more than twice the $19.2 million loss experienced in the same period the year prior, largely driven by a change in fair value of investor option liability and stock-based compensation expenses.

Weibo reported 143.8 million monthly active users as of March, compared with Twitter’s 241 million in December. According to Bloomberg, Weibo reaps $1.46 in revenue per user, roughly half of Twitter’s $2.76 per user.

Some investors think Weibo could be undervalued because its valuation at $17 to $19 a share is 18 to 21 times the revenue it reported last year. In comparison, Twitter’s market capitalization of $25.8 billion is 39 times its sales, and its stock price has gained 75% since its IPO in November.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal

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