SINA - Weibo: A Falling Knife?
Currency and Trade War
Weibo's (WB) stock price was down 41% to $80 from its peak $140. In the last five years, we could clearly observe the trend that Weibo's big sell-off always occurs when RMB quickly depreciated against USD. In early 2016, when RMB quickly depreciated against USD as people were worried about the slowing Chinese economy, Weibo's stock price plunged from $20 to $13 in two months. As Weibo's revenue is based in RMB, a significant currency depreciation is going to drive down returns for the U.S. investors. It is difficult for me