The low market value of Weibo is due to the fact that the valuation of the capital market is not completely linked to financial indicators such as revenue and net profit, but is closely related to the prospect and growth value. There are several specific reasons: Sina Weibo is known as the China version of Twitter, and now the market value of Twitter exceeds 24 billion US dollars.

Therefore, Weibo can package itself in the name of China version of Twitter, so as to gain recognition from foreign investors.

According to the listing prospectus of Twitter, as of June 30th, 20 13, Twitter had 2180,000 active users, and the number of daily active users exceeded100,000. According to the prospectus submitted by Sina Weibo, in 20 13 12 years, the monthly active users (MAU) 1.29 1 100 million, and the daily average active users (DAU) reached 61.4000. No matter the total number of active users or daily active users, Sina Weibo can be said to be more than half of Twitter. This can better support the overall valuation of Sina Weibo. In terms of total revenue, Tencent's 2016.970 billion yuan (US$ 2.783 billion), Netease's 20 13 revenue was 9.8 billion yuan (about US$ 5.72 million), and Sohu's revenue reached US$ 737.9 million, both exceeding Sina's. Sina's business structure is relatively simple. At present, online advertising business is the main business, and advertising revenue accounts for nearly 80%. Tencent, Netease, Sohu, in addition to online advertising business, other businesses are developing strongly, such as games. Some new businesses developed by Sina, such as real estate, were split and listed, which also affected Sina's market value. Sina's real estate business was renamed Sina Leju in 2008, and this part of the business has developed well. April 17, the same day it was listed in Weibo, Leju also successfully landed in the US capital market, and rose 18.6% on the first day of listing. If the market value of real estate business is added, the market value of Sina will surpass that of Sina Weibo. The financial report released by Sina shows that in the fourth quarter of 20 13, Sina Weibo's revenue was USD 710.4 million, up 15 1% year-on-year, up 33.7% month-on-month, and achieved a quarterly profit of USD 3 million for the first time. At the same time, Sina Weibo also found the "backer" of Alibaba. In April last year, Alibaba announced that it would acquire a 0/8% stake in Sina Weibo/KLOC-0 for US$ 586 million.

According to the agreement at that time, Alibaba will pay the advertising fee of $380 million to Sina Weibo within three years. This has benefited Sina Weibo a lot. According to the financial report of Sina in 20 13, the total revenue of Sina Weibo was $201880,000, and the advertising revenue was $0/48.4 million, accounting for 78.8% of the total revenue of Sina Weibo in 20 13. Among them, Alibaba's advertising revenue reached 4.965438 billion US dollars, accounting for 33. 1% of Sina Weibo's advertising revenue. In the next two years, the advertising investment from Alibaba will still strongly support the advertising business of Sina Weibo. Of course, simply comparing Sina, the market value of Sina Weibo wins. However, the current market value of Sina Weibo is still far behind the previous valuation of some research institutions of around $8 billion.