Brief Growth Ideas: Weibo (WB): Revenues Slowed Down Significantly in 4Q2018, Failed in Transition and more

In this briefing:

1. Weibo (WB): Revenues Slowed Down Significantly in 4Q2018, Failed in Transition
2. NIO’s (蔚来) Guidance Makes Selling upon Lock-Expiry More Compelling

1. Weibo (WB): Revenues Slowed Down Significantly in 4Q2018, Failed in Transition

• The advertising revenues slowed down significantly in 4Q2018.
• We believe the content transition from politics to entertainment was not as good as the management expected.
• We believe WB will not defeat Tencent’s WeChat.
• We believe the stock price has downside of 9%.

2. NIO’s (蔚来) Guidance Makes Selling upon Lock-Expiry More Compelling

NIO Inc (NIO US) fell 17% in its after-hour trading session post announcement of its Q4 results.  The company turned a gross profit in Q4 while the number of cars delivered in the full year 2018 was 11,348 has beaten their own 10,000 cars target. The company is currently trading 62% above its IPO price.

However, the worrying part lies in its guidance which could mean that pre-IPO investors have more compelling reasons to lock-in some profits upon lock-up expiry.