China’s Weibo Finally Gets the Better of Twitter in Market Capitalization War
China's microblogging website Weibo has for the first time leapfrogged its American peer Twitter in market capitalization, after Twitter's shares plunged two days in a row due to disappointing fourth quarter results.
The two-day freefall halved Twitter's market capitalization by about $200 billion to bring it to $11.1, allowing Weibo to overtake with a market capitalization of $11.3.
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Weibo's market capitalization may continue to grow further, considering that it is currently on a stronger footing than its American counterpart. The Chinese microblogging website comparatively boasts of more monthly active users and its recent quarterly results was better than Twitter's.
The last time Weibo came very close to overtaking Twitter's market capitalization was in October 2016, when the latter's share traded in red for several days. This was also a time when Twitter takeover rumors were doing rounds in the market.
Twitter's steady fall from grace makes for an enticing case study, especially considering that its other social media counterparts Facebook and Snapchat have not only managed to hold on but also achieved substantial growth in their advertising revenues.
When compared to Weibo, the American microblogging website's weak performance calls for even more special attention. This is primarily because Weibo has managed to march ahead despite its appeal restricted to Chinese market, whereas Twitter has flattened up despite its global reach beyond the U.S. market.
Twitter's CEO Jack Dorsey called on for more patience from investors after announcing the fourth quarter results.
"It will take time to show the results we all want to see, and we're moving forward aggressively. The whole world is watching Twitter," he said.