According to the research report published by Bank of China International, Weibo (09898.HK) recorded revenue of 0.438 billion USD in the second quarter of this year, a 1% decrease from the previous year, which is in line with market expectations. Calculated with the same exchange rate, it increased by 1% year-on-year. Within the period, core advertising business revenue decreased by 3%, excluding the impact of exchange rates, the decline was 1%.

The bank pointed out that the proportion of daily and monthly active users of Weibo improved to 43.9% during the period, and the adjusted net profit margin reached 28.8%, which reflects the company's good performance in terms of high-quality users, content, and operational strategies. Its core strategy remains unchanged and is expected to further enhance its advantages in social platforms. However, due to the weak macro environment, cautious advertising clients' consumption willingness, and intensified competition in online advertising, Weibo's core advertising business will face short- to medium-term pressure. The bank maintains a "hold" rating and lowers the target price to 64 yuan.