Fri, Jun. 19, 9:21 AM
- 10 days after E-House (NYSE:EJ) announced co-chairman/CEO Xin Zhou and director Neil Shen (26% stake between them) have offered to take it private for $7.38/share (part of a huge wave of going-private offers for U.S.-traded Chinese companies), SINA announces it has joined Zhou and Shen's consortium.
- Sina adds the consortium owns 48% of E-House's shares; that implies Sina's stake is at 22%. If/when the deal closes, Sina plans to exchange its E-House stake for a portion of the shares in E-House's LEJU online real estate subsidiary currently owned by E-House.
- E-House's board is "continuing its evaluation" of the offer. Shares currently trade 6% below the offer price.
Wed, Jun. 17, 10:23 AM
- Qihoo says it has received a ~$10B going-private offer from a group led by CEO Hongyi Zhou, the largest offer yet in the wave of bids received by U.S.-traded Chinese firms in recent weeks.
- Meanwhile, ahead of Qihoo's announcement, the high-flying Shanghai and Shenzhen exchanges respectively rose 1.7% and 2%. The indices are respectively up 140% and 181% over the last 12 months.
- In addition to YY and SouFun (previously covered), major Chinese tech gainers include Sina (SINA +4.8%), Weibo (WB +6.1%), Bitauto (BITA +4.9%), Youku (YOKU +6.8%), Momo (MOMO +8.3%), Xunlei (XNET +8.6%), Dangdang (DANG +5.6%), Sohu (SOHU +4.4%), Zhaopin (ZPIN +5.9%), and Jumei (JMEI +6.1%).
- ETFs: CQQQ, KWEB, QQQC
Fri, Jun. 5, 12:24 PM
- In what's now a familiar story, U.S.-traded Chinese Internet stocks are posting big gains following an overnight rally in the Middle Kingdom: The Shanghai Composite rose 1.5%, topping 5,000 for the first time since 2008. The Nasdaq is nearly flat.
- Big gainers include Qihoo (QIHU +7.5%), Bitauto (BITA +5.8%), JD.com (JD +4%), YY (YY +4.9%), 58.com (WUBA +3.9%), Sina (SINA +7.8%), Weibo (WB +4.8%), 500.com (WBAI +9.9%), Jumei (JMEI +4.3%), Sky-mobi (MOBI +4.3%), iDreamSky (DSKY +5.3%), E-House (EJ +3.6%), and Leju (LEJU +4%). Qunar is also up strongly after downsizing and pricing a stock offering.
- Sina and Weibo are now respectively up 39% and 22% since Sina CEO Charles Chao announced on Monday he's investing $456M in Sina.
- ETFs: KWEB, CQQQ, QQQC
Wed, Jun. 3, 3:59 PM
- Sina (SINA +3.9%) and subsidiary Weibo (WB +8.7%) have emphatically added to the big Monday gains seen after Sina chairman/CEO Charles Chao announced a $456M investment in his company. Sina is up 29% on the week; Weibo is up 21%.
- Earlier today, SA author Doug Young argued Chao's investment, along with other recent news/rumors, suggests "Sina is probably quite undervalued, in no small part due to Chao’s lack of inspiration despite his capable leadership." He also thinks Chao's purchase signals "he probably wants to have one more try at revitalizing his company." There has been speculation Chao may want to eventually spin off Sina properties not named Weibo.
- Orange Peel Investments provided a cautious reaction on Monday. "[W]hy dilute here? Why not just allow the CEO to purchase on the open market if he wants to show that he's bullish? The company already has a substantial cash position when compared to its $800M in debt."
Mon, Jun. 1, 11:46 AM
- SINA chairman/CEO Charles Chao plans to buy 11M newly-issued shares at $41.49 apiece (total cost of $456M). His purchase price is equal to Sina's 30-day average closing price as of May 29, and above a Friday close of $40.73.
- Chao's shares are subject to a 6-month lockup restriction. Sina had $2.1B in cash/short-term investments at the end of Q1, and $800M in convertible debt.
- Sina has soared to its highest levels since last summer, and has taken subsidiary Weibo higher with it.
Fri, May 29, 5:36 PM
Thu, May 14, 5:40 PM
- SINA is up 1.5% AH to $43.34 after posting a healthy Q1 beat aided slower spending growth; the company didn't provide guidance in its earnings release. Majority-owned Weibo (NASDAQ:WB) is down 3.6% to $16.45 after providing soft Q2 guidance - revenue of $102M-$105M, below a $111.4M consensus - to go with a Q1 revenue beat an in-line EPS.
- Weibo states the Q2 outlook assumes revenue related to "certain planned initiatives with Alibaba" set to begin in Q2 won't be recognized until 2H15.
- Sina's Q1 ad sales rose 8% Y/Y to $150.4M, with a $27.3M increase in Weibo ad sales offsetting a $12.7M drop in portal ad sales (share loss). Non-ad revenue was nearly flat at $31.6M.
- After rising 34% Y/Y in Q4, Sina's operating expenses only rose 15% in Q1 to $119.6M. Gross margin fell 200 bps Y/Y to 58%.
- Weibo's ad/marketing revenue rose 53% to $79.2M; value-added service revenue rose 9% to $17.1M. Costs/expenses rose 30% to $94.7M.
- Weibo monthly active users rose a healthy 13% Q/Q and 38% Y/Y to 198M, with mobile MAUs equaling 86% of total MAUs. Daily active users rose 10% Q/Q and 34% Y/Y to 89M.
- Sina: Q1 results, PR. Weibo: Q1 results, PR.
Thu, May 14, 4:31 PM
Wed, May 13, 5:35 PM
Mon, Apr. 27, 12:17 PM
- Chinese Internet stocks are adding to their big recent gains following a 2.7% overnight rally in Shanghai, as investor sentiment towards Chinese equities continues improving following a string of stimulus moves. Today's gains come with the Nasdaq (took out its 2000 highs on Friday) down 0.2%.
- Baidu (BIDU +3%) is among the winners. Others include Youku (YOKU +10.7%), Vipshop (VIPS +4.1%), Dangdang (DANG +6.7%), 58.com (WUBA +3%), E-House (EJ +3.7%), 500.com (WBAI +4.3%), Sina (SINA +4.1%), Bitauto (BITA +3.1%), Autohome (ATHM +2.4%), Qunar (QUNR +3.5%), Xunlei (XNET +5.7%), and Renren (RENN +2.3%).
- Baidu's gains come ahead of its Wednesday Q1 report. Vipshop and 58.com have made fresh highs; the latter is up 61% since the first report emerged of a deal (later confirmed) with rival Ganji.com. Youku is up 53% from an April 2 post-earnings low of $12.31, and 500.com is up 47% since the company suspended all online lottery sales in early April, while stating it will work with regulators to restart sales. Renren is up 31% from its March 30 close, possibly aided by enthusiasm for its large and growing portfolio of online lending investments.
- JD.com and Sky-mobi are rallying today with the help of bullish analyst notes. Perfect World has received a lift from an improved buyout offer.
- ETFs: KWEB, CQQQ, QQQC
Mon, Apr. 13, 11:39 AM
- The Chinese government has threatened to shut down SINA's portal unless it "improves censorship," state-owned Xinhua reports.
- The portal is declared by Internet regulator CAC to have "distorted news facts, violated morality and engaged in media hype." In a likely reference to Weibo's (NASDAQ:WB) microblogging platform, CAC adds "censorship of user accounts has been poor."
- Sina and Weibo have often sparked the ire of government censors in recent years. Weibo (along with peers) began requiring users to register with their real names a couple years ago, following government pressure.
Wed, Apr. 8, 10:58 AM
- Following a big overnight rally in Hong Kong (followed a 3-day holiday during which Shanghai rallied), beaten-down Chinese Internet and mobile stocks have soared in U.S. trading.
- The biggest gainers include many names that are far below their 2014 highs: The group includes Qihoo (QIHU +10.5%), YY (YY +14.9%), Taomee (TAOM +14.3%), Sina (SINA +8.7%), and Weibo (WB +12.1%). Mobile game publishers Sky-mobi (MOBI +12.6%), China Mobile Games (CMGE +8%), and iDreamSky (DSKY +13.4%) are also sharply higher, as are online real estate plays SouFun (SFUN +13.1%), E-House (EJ +6.1%), and Leju (LEJU +9.8%).
- Giants Alibaba (BABA +3.4%) and Baidu (BIDU +4.1%) aren't being left out. Neither are Youku (YOKU +7.5%), 21Vianet (VNET +7.4%), Momo (MOMO +6.8%), Sohu (SOHU +7.7%), Changyou (CYOU +4.5%), Dangdang (DANG +7.3%), Vipshop (VIPS +4.8%), JD.com (JD +3.9%), Jumei (JMEI +6.6%), Sungy Mobile (GOMO +5.8%), China Techfaith (CNTF +7.1%), and KongZhong (KZ +5.5%).
- Alibaba has proposed an asset injection into its money-losing Alibaba Pictures (+36% in Hong Kong) film arm. Sky-mobi has seen Rosenblatt (Buy) hike its target to $11, while noting many Chinese mobile game developers have been bought out; it thinks Sky-mobi's investments in developers could be worth $140M. NetEase has been upgraded by CICC Research.
- Over in Hong Kong, software/cloud services provider Kingsoft (OTCPK:KSFTF) rose 24.2% to HKD$29.50. Messaging/gaming giant Tencent (OTCPK:TCEHY) rose 3.3% to HKD$154.80.
- ETFs: KWEB, CQQQ, QQQC
Tue, Mar. 10, 5:07 PM
- Though it beat Q4 estimates, SINA is guiding for 2015 revenue of $800M-$900M; the midpoint is below an $884.6M consensus. Majority-owned Weibo (NASDAQ:WB) is guiding for Q1 revenue of $93M-$96M vs. a $94.4M consensus.
- The companies have announced Sina CFO Herman Yu will become Weibo's CFO, and Weibo CFO Bonnie Zhang will become Sina's CFO.
- With Weibo providing a boost, Sina's ad revenue rose 14% Y/Y in Q4 to $181.9M. Non-advertising revenue (non-GAAP) fell 18% to $26.6M, with a $4.8M drop in mobile value-added service (VAS) revenue offsetting a $1.9M increase in Weibo VAS revenue.
- Sina's gross margin was 65%, up from 63% in Q3 and 64% a year ago. Operating expenses rose 34% Y/Y to $132.9M (compares with just 7% revenue growth).
- Weibo's Q4 revenue beat was driven by a 57% Y/Y increase in ad/marketing service revenue to $88M; VAS revenue rose 12% to $17.2M. Costs/expenses rose 40% to $95.5M (compares with 47% revenue growth).
- Weibo monthly active users rose 5% Q/Q and 36% Y/Y to 175.7M. Daily active users rose 5% Q/Q and 31% Y/Y to 80.6M.
- SINA +0.8% AH to $36.50; shares went into earnings less than $2 away from a 52-week low of $34.89. WB -1.8% to $14.61 after rising 2.2% in regular trading.
- Sina: Q4 results, PR. Weibo: Q4 results, PR.
Tue, Mar. 10, 4:33 PM
Mon, Mar. 9, 5:35 PM
Wed, Jan. 7, 12:46 PM
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