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Nov 08, 2018
Weibo Downward Trend Defying Odds, Prepping for Earnings

Weibo Downward Trend Defying Odds, Prepping for Earnings

Chinese social media company Weibo (Nasdaq: WB) is set to announce earnings on Wednesday, November 7 and the stock has been defying the odds in a certain manner. The stock has been trending lower since February within a clearly defined trend channel, but the company has some incredible fundamentals.

The daily chart shows the trend channel and how the stock has moved methodically lower over the last nine months. The upper rail of the channel is in sync with the 50-day moving average and has helped keep the trend going.

What is really odd about Weibo, in my view, is that the company’s fundamental ratings are really good. Looking at Investor’s Business Daily’s EPS and SMR ratings, the company gets a 99 on the EPS rating and an A on the SMR rating. Those are both the best ratings you can get.

The EPS rating measures a company’s earnings growth over the last three years as well as in the last few quarters. It compares them to all other companies in the IBD database and assigns a rating between 1 and 99 with 99 being the best.

The SMR rating measures a company’s sales growth, profit margin, and return on equity. The ratings range from A to E with A being the best.

Turning to one more rating from IBD, the company’s Relative Strength rating is currently at 6. The rating measures how the stock price has done compared to all other stocks in the database and assigns a rating between 1 and 99. A rating of a 6 means that 94% of stocks in the database have performed better than Weibo.

Related Ticker: WB

Contributor

Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.


Momentum Indicator for WB turns negative, indicating new downward trend

WB saw its Momentum Indicator move below the 0 level on August 11, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned negative. In 72 of the 89 cases, the stock moved further down in the following days. The odds of a decline are at 81%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Moving Average Convergence Divergence Histogram (MACD) for WB turned negative on August 07, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 34 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 79%.

WB moved below its 50-day moving average on August 13, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for WB crossed bearishly below the 50-day moving average on August 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 57%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where WB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 81%.

The Aroon Indicator for WB entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator shows that the ticker has stayed in the oversold zone for 15 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 22 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

WB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 3 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.408) is normal, around the industry mean (5.843). P/E Ratio (5.479) is within average values for comparable stocks, (27.560). Projected Growth (PEG Ratio) (0.791) is also within normal values, averaging (27.634). Dividend Yield (0.092) settles around the average of (0.048) among similar stocks. P/S Ratio (1.001) is also within normal values, averaging (69.922).

The Tickeron SMR rating for this company is 76 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 80 (best 1 - 100 worst), indicating slightly worse than average price growth. WB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Nebius Group N.V. (NASDAQ:NBIS), Baidu (NASDAQ:BIDU), Tencent Music Entertainment Group (NYSE:TME), Pinterest (NYSE:PINS), Snap (NYSE:SNAP), Zillow Group (NASDAQ:Z).

Industry description

Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.

Market Cap

The average market capitalization across the Internet Software/Services Industry is 142.29B. The market cap for tickers in the group ranges from 2.69K to 4.12T. GOOGL holds the highest valuation in this group at 4.12T. The lowest valued company is STBXF at 2.69K.

High and low price notable news

The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was -3%, and the average quarterly price growth was -3%. SLE experienced the highest price growth at 25%, while SJ experienced the biggest fall at -30%.

Volume

The average weekly volume growth across all stocks in the Internet Software/Services Industry was 6%. For the same stocks of the Industry, the average monthly volume growth was -28% and the average quarterly volume growth was -45%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 73
Price Growth Rating: 61
SMR Rating: 77
Profit Risk Rating: 93
Seasonality Score: -12 (-100 ... +100)
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General Information

a provider of advertising and online marketing services

Industry InternetSoftwareServices

Profile
Details
Industry
Internet Software Or Services
Address
No. 8 Xinyuan S. Road
Phone
+86 1058983095
Employees
5651
Web
http://ir.weibo.com
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