Weibo (WB) Stock Falls After Downgrade

NEW YORK (TheStreet) -- Shares of Weibo (WB) were falling 6.1% to $15.58 Monday after the Chinese Internet company was downgraded by Summit Research.

In a note to investors Summit Research downgraded Weibo to "hold" from "buy."

The downgrade comes after Weibo issued a light guidance for the second quarter. Weibo said it expects revenue of $102 million to $105 million for the second quarter, below analysts' estimates of $111.39 million for the quarter.

For the first quarter Weibo reported earnings of 1 cent a share, in line with analysts' estimates for the quarter. Revenue grew 42.6% year over year to $96.3 million for the first quarter, above analysts' estimates of $94.64 million for the quarter.

Weibo said it had 198 million monthly active users (MAUs) in March, up 38% from the year-ago month. Mobile MAUs was 86% of total MAUs in March. The company report 89 million daily active users for March, up 34% year over year.

About 1.1 million shares of Weibo were traded by 10:47 a.m. Monday, above the company's average trading volume of about 659,000 shares a day.

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