Emily Flippen

Billions of people, it's hard, it's expensive, maybe they just need more time here.

I think the risk of bankruptcy, given their financial profile, is still low with such smart backing.

I compare Weibull to maybe even a business like eBay, where, yeah, you can make the argument, does this company really need to exist?

But there's probably still a lot of leverage that management can do with what is otherwise a very profitable, very cash-generating asset.

They are losing out on ad dollars to competition, like Red Note, of course, and the platform is declining in popularity.

But management team seems aware and OK with that.

They still have hundreds of millions of monthly active users.

And they monetize decently well.

They have operating margins north of 27% in the most recent quarter.

So much cash that they're actually doubling their operating income just based off the interest income they're generating off of their cash sitting there in their bank accounts.

So on a price-to-earnings basis, the business is trading at a PE ratio of five times.

So quite literally, price like the company is going to disappear in the next decade.

Is that possible?

Yes.

Of

Of course, it's possible.

I think this does not pass David Gardner's snap test.

I think if you snap your fingers, it's entirely possible we can replace Weibo with a medley collection of other social media platforms.

But with oodles of cash flow, hundreds of millions of dollars of super low CapEx and reinvestment expenses, I think if they can just figure out how to better monetize users that exist on their platform, this could be an underappreciated opportunity.

Yes, Jason, thank you so much for coming in and playing host and allowing me to, I guess, entertain you both with four Chinese companies that reported earnings this morning, yes, but also are opportunities that I think are sometimes going underappreciated or missed by opportunities.