Sina/Weibo Relative Valuations Present Huge Arbitrage Opportunity
CVC Research • 46 Comments
CVC Research • 46 Comments
Thu, Sep. 8, 3:00 PM
Thu, Sep. 8, 9:23 AM
Tue, Aug. 9, 3:00 PM
Mon, Aug. 8, 4:32 PM
Sun, Aug. 7, 5:35 PM
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Mon, Jul. 25, 4:41 AM
- China's top internet regulator has ordered major online companies including Sina Corp. (NASDAQ:SINA) Tencent (OTCPK:TCEHY), Sohu.com (NASDAQ:SOHU) and NetEase (NASDAQ:NTES) to stop original news reporting, tightening its grip over the country's web and information industries.
- President Xi Jinping has stressed that Chinese media must serve the interests of the ruling Communist Party, giving authorities near-absolute control over online news and political discourse.
Wed, May 11, 5:35 PM
Wed, May 11, 5:11 PM
- While subsidiary Weibo (NASDAQ:WB) is up 3.5% after hours, Sina (NASDAQ:SINA) is trading down 4.7% on its Q1 results, which beat revenue expectations with the help of strong results at Weibo.
- Net revenues were up nearly 8% to $196.1M; online advertising revenues rose 8.3% to $163M. Weibo (of which Sina owns 56.9%) contributed ad/marketing gains of $20.1M, partially offset by a drop of $7.5M in portal advertising.
- GAAP net income of $15.3M became a non-GAAP net loss of $2.8M, due to equity loss at E-House.
- Cash and equivalents were $2.2B. Net cash from operating activities was $18.2M; capex was $8M
- Conference call to come at 10:10 p.m. ET.
- Press Release
Wed, May 11, 4:33 PM
Tue, May 10, 5:35 PM
Wed, Mar. 2, 5:03 PM
- SINA's Q4 beat has been accompanied by guidance for 2016 revenue of $850M-$950M, below a $985.9M consensus. Subsidiary Weibo's (NASDAQ:WB) Q4 beat is accompanied by Q1 sales guidance of $111M-$116M, below a $118.2M consensus. SINA -4.3% after hours to $41.85. WB +3% after hours to $14.99.
- Along with the numbers, Sina has announced a $500M buyback. It's good for repurchasing 17% of shares at current levels, and lasts through the end of June 2017.
Sina's Q4: A $41.6M increase in Weibo ad revenue allowed Sina's online ad revenue to rise 23% Y/Y to $223.2M. Non-ad revenue rose 9% to $33M thanks to higher Weibo and portal revenue.
Gross margin was flat Y/Y at 65%, and non-GAAP operating expenses rose just 1% to $125M (boosted EPS). Sina ended Q4 with $2.4B in cash and $800M in convertible debt.
Weibo's Q4: Ad/marketing revenue rose 47% Y/Y to $129.5M. Value-added service revenue rose 13% to $19.5M in spite of a 31% drop in data licensing revenue; Weibo calls data licensing "a de-emphasized business." Non-GAAP costs expenses rose 22% to $116.3M.
Weibo monhtly active users rose 6% Q/Q and 34% Y/Y to 236M. Daily active users rose 6% Q/Q and 32% Y/Y to 106M. Mobile DAUs rose 46% Y/Y to 94M, and average daily video views rose 53% Q/Q.
- Sina: Q4 results, earnings release
- Weibo: Q4 results, earnings release
Wed, Mar. 2, 4:31 PM
- Sina (NASDAQ:SINA): Q4 EPS of $0.35 beats by $0.02.
- Revenue of $253.6M (+21.6% Y/Y) beats by $11.87M.
- Shares -1.25%.
Tue, Mar. 1, 5:35 PM
Tue, Jan. 12, 1:24 PM
Thu, Jan. 7, 2:00 PM
- Hammered three days ago as U.S. and Chinese markets tumbled, the story is much the same today for U.S.-traded Chinese tech firms. The Nasdaq is down 2.7%, and the Shanghai and Shenzhen exchanges respectively fell 7% and 8.3% overnight amid an ongoing selloff in the yuan, which now trades at 6.59 per dollar.
- The Guggenheim China Tech ETF (CQQQ -4.7%) is now down 8% in 2016. It's still 30% above an August low of $25.36.
- Internet giants Baidu (BIDU -7.1%) and Alibaba (BABA -6.5%) are among the names seeing steep losses. Others include Sina (SINA -6%), Weibo (WB -8.5%), Qunar (QUNR -12.4%), JD.com (JD -6.4%), ChinaCache (CCIH -9.6%), Jumei (JMEI -8.7%), Zhaopin (ZPIN -5.7%), Baozun (BZUN -7.4%), NQ Mobile (NQ -5.8%), and Momo (MOMO -6.1%). Over in Hong Kong, messaging/gaming leader Tencent (OTCPK:TCEHY) fell 4%.
- ETFs: QQQC, KWEB, EMQQ
Nov. 18, 2015, 6:05 PM
- SINA is up 2.3% after hours after beating Q3 estimates (no guidance has been given). Subsidiary Weibo (NASDAQ:WB) is up 2.7% after beating estimates and guiding for Q4 revenue of $146M-$149M, in-line with a $147.2M consensus.
- Sina's online ad revenue rose 16% Y/Y in Q3 to $193.5M with Weibo's help. None-ad revenue (non-GAAP) rose 3% to $30.2. Operating expenses fell 10% to $113.9M thanks to lower SG&A spend.
- Weibo's ad/marketing revenue jumped 62% to $105.9M. Value-added service revenue rose fractionally to $18.9M. Non-GAAP costs/expenses rose 17% to $103.2M.
- Weibo monthly active users rose 5% Q/Q and 33% Y/Y to 222M. Daily active users rose 8% Q/Q and 30% Y/Y to 100M. Mobile MAUs equaled 85% of total MAUs, even with Q2.
- Sina: Q3 results, PR. Weibo: Q3 results, PR.