Sina's Earnings Pop Provides Short Opportunity
By Bill Maurer: Shares of Chinese online media firm Sina Corp (SINA) rose sharply on Wednesday after its quarterly earnings report, which was mixed. The net loss the company posted was not as big as expected, but revenues came in a little light, and revenue guidance for the next quarter was light as well. Sina shares popped because the company stated it is closer to getting advertisements up on Weibo, its microblogging service. Shares had been so down lately that this kind of pop seemed almost inevitable to me. However, I was not impressed with the results. I'll discuss the quarter first, and then I'll present my argument as to why this is a potential short candidate.
Sina reported net revenues up 6% to $106.2 million. However, its non-GAAP revenues, which the company provides guidance for, and analysts target their estimates at, came in at $101.5 million. This was at theComplete Story »