Shares in 58.com Inc (ADR) (NYSE:WUBA) continue to slump from the after-effects of the company’s third quarter earnings report and the spate of downgrades it sparked from analysts.
The ADR fell 2.22% Tuesday to end at $31.22 on a traded volume of 1.63 million.
58.com Inc is a holding company for various internet properties such as online classifieds and listings platforms, online real estate listings, a home services transactional platform. It is said to have a near monopoly in China’s online classified ad market.
Technically, the stock has been delivered a one-two punch by its last two earnings reports, each of which triggered sharp gap-down declines.
On the weekly chart, 58.com has finally pushed down through a long-term symmetrical triangle, showing that the bears finally had their way on the trading floor.
58.com Inc (ADR) (NYSE:WUBA) – what happened in Q3
58.com had a mixed result in Q3. It reported EPS of $0.00 which beat estimates by $0.08, and revenue of $306.5 million which missed by $1.79 million but was up 43.9% year on year.
“Our key operational metrics, traffic, revenues, and customer numbers all continued to grow on a year-over-year basis,” commented Mr. Michael Yao, Chairman and Chief Executive Officer of 58.com.
“I am pleased to see our business growing and operational efficiency increasing despite a slowing macro-economic environment in China, which I believe demonstrate the value that our products provide to users,” he added.
According to the CFO, total revenues and paying membership accounts hit new record highs during the third quarter.
58.com Inc (ADR) (NYSE:WUBA) – analysts are not pleased
The Q3 report drew downgrades from a number of analysts on November 11.
Credit Suisse moved down their rating from Outperform to Neutral.
CLSA analysts trimmed their rating from Outperform to Underperform.
Analysts at Brean Capital lowered from Buy to Hold.
Yesterday, HSBC downgraded the ADR from Buy to Hold.