Weibo (NASDAQ: WB), China's Twitter-like social media platform, saw its stock surge 5.58% in trading on Wednesday following the release of its better-than-expected fiscal first-quarter results. The company's strong performance, driven by user growth and AI integration, has reignited investor confidence in the Chinese tech giant.

Weibo reported quarterly revenue of $396.9 million, up 0.34% year-on-year and surpassing the analyst consensus estimate of $394.2 million. The company's adjusted earnings per share (EPS) of 45 cents also beat the analyst expectations of 38 cents. These results demonstrate Weibo's resilience in a challenging market environment and its ability to maintain growth despite economic headwinds.

User engagement metrics showed promising growth, with monthly active users (MAUs) reaching 591 million in March 2025, up from 588 million a year ago. Average daily active users (DAUs) also increased to 261 million from 255 million year-over-year. This growth in user base, coupled with the company's focus on AI integration, particularly in its search function, has contributed to improved user experience and engagement. CEO Gaofei Wang highlighted the success of Weibo Intelligent Search, an AI-powered search function, which achieved significant sequential growth in both user base and daily search queries during the quarter.

The company's advertising business delivered a solid performance, leveraging strengths in content marketing and enhanced ad placement efficiency. Additionally, Weibo's disciplined spending strategy led to improved operating efficiency, with the adjusted operating margin growing by 100 basis points to 33%. This financial prudence has positioned the company well for future investments in product competitiveness and AI technology, while also allowing for potential shareholder returns. The positive results and forward-looking strategy have clearly resonated with investors, driving the stock's impressive rise in today's trading session.