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.
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
Wed, Jan. 7, 12:46 PM
Dec. 1, 2014, 10:38 AM
- Chinese Internet and telecom names are among the biggest tech decliners as the Nasdaq registers a 0.9% drop. A soft November PMI print isn't helping.
- Giants Alibaba (BABA -4.3%) and Baidu (BIDU -2.8%) are among the casualties. As is Qunar (QUNR -5.8%), which reports after the bell.
- Other Internet decliners: BITA -12%. QIHU -4.4%. CTRP -4.3%. SFUN -7.2%. LEJU -7.5%. RENN -6.3%. SINA -3.8%. WB -3%. YY -3.9%. VIPS -3.8%. SOHU -3.5%. MOBI -4.3%. CMGE -8.6%.
- Telecom decliners: CHL -3.6%. CHU -3.9%. CHA -4%.
- ETFs: KWEB, CQQQ, QQQC
Nov. 13, 2014, 4:52 PM
- Though it beat Q3 estimates, SINA expects Q4 revenue of $204M-$210M, below a $214.8M consensus. On the other hand, majority-owned Weibo (NASDAQ:WB) expects Q4 revenue of $102M-$105M, above a $100.6M consensus.
- Thanks to Weibo, Sina's Q3 ad revenue rose 10% Y/Y to $166.8M, and its non-ad revenue rose 3% to $29.2M. However, portal ad revenue fell by $6.5M Y/Y, and mobile value-added service revenue fell by $7.4M.
- Sina's Q3 gross margin was 63%, +200 bps Q/Q and -100 bps Y/Y. Opex rose 40% Y/Y to $127.1M, handily exceeding revenue growth of 9%.
- Weibo's ad/marketing revenue rose 50% Y/Y to $65.4M, and its value-added services revenue (boosted by its Alibaba partnership) 93% to $18.8M. Costs/expenses rose 51% to $87.8M, slightly trailing revenue growth of $84.1M.
- Weibo monthly active users rose 7% Q/Q and 36% Y/Y to 167M. Daily active users rose 10% Q/Q and 30% Y/Y to 76.6M.
- Sina: Q3 results, PR. Weibo: Q3 results, PR.
Sep. 15, 2014, 1:21 PM
- Maybe looking to raise cash with which to buy Alibaba (Pending:BABA) this week, investors are dumping a wide swath of other Chinese internet names.
- Qihoo (QIHU -2.6%), Sohu.com (SOHU -5.3%), Baidu (BIDU -3.8%), Sina (SINA -4.9%), Renren (RENN -4%), Weibo (WB -11.3%), YY (YY -7.3%).
- Previously: Alibaba to boost IPO size
Aug. 15, 2014, 9:13 AM
Aug. 14, 2014, 6:05 PM
- SINA expects Q3 revenue of $193M-$199M, below a $199.1M consensus. Subsidiary Weibo (NASDAQ:WB) expects Q3 revenue of $79M-$82M, in-line with an $80.2M consensus.
- Sina's online ad revenue rose 29% Y/Y in Q2 to $184.4M, while its non-ad revenue fell 11% to $28.6M thanks to a $13.6M drop mobile value-added service revenue. The revenue figures include contributions from Weibo.
- Sina's gross margin rose to 61% from 60% in Q1 and 54% a year ago. Opex rose 55% Y/Y (well above rev. growth of 19%) to $116.9M thanks to heavy marketing and R&D investments.
- Weibo's ad/marketing revenue rose 99% Y/Y to $59.6M, and its value-added service revenue rose 130% to $17.7M. Costs/expenses rose 18% (less than rev. growth of 105%) to $87.8M.
- Weibo's monthly active users rose 9% Q/Q and 30% Y/Y to 156.5M. Daily active users rose 5% Q/Q and 32% Y/Y to 69.7M.
- Low expectations appear to be helping Sina out.
- Sina: Q2 results, PR. Weibo: Q2 results, PR.
May 21, 2014, 5:42 PM
May 21, 2014, 5:28 PM
- SINA expects Q2 revenue of $177M-$182M, soundly below a $197.7M consensus.
- Weibo (WB), 57%-owned by Sina following its IPO, expects Q2 revenue of $74M-$76M, below a $77.9M consensus. The microblogging leader (revenue +161% Y/Y) accounted for 40% of Sina's Q1 revenue of $167.3M.
- Sina's online ad revenue (inc. Weibo) rose 44% Y/Y in Q1 to $135.7M, while its non-ad revenue rose 17% to $31.6M.
- Gross margin was 60% vs. 64% in Q4 and 51% a year ago, and opex rose 50% Y/Y to $104.4M (exceeding rev. growth of 38%).
- Weibo's ad/marketing revenue rose 161% Y/Y to $51.9M, and its value-added service revenue grew 120% to $15.7M. Display ad growth boosted the former figure, as did promoted Weibo feeds and e-commerce ads stemming from the company's Alibaba partnership.
- Weibo's costs/expenses rose 76% Y/Y to $73.1M. Monthly active users (MAUs) rose by 14.7M Q/Q to 129.1M, and daily active users by 5.2M to 66.6M.
- Sina: Q1 results, PR. Weibo: Q1 results, PR
May 2, 2014, 5:14 PM
- SINA expects to report Q1 revenue of $171M and EPS of $0.15, above a consensus of $164.7M and $0.13.
- The company also announces it received two notices from Chinese regulators stating its "License for Online Transmission of Audio-Visual Programs would be revoked due to certain unhealthy and indecent content from third-parties or by users" on Sina.com and its affiliated online literature site.
- Sina says it's still "evaluating the impact" of the decision. The notices arrive a week after media reports stated Sina's licenses are being revoked.
- Subsidiary Weibo (WB) is down 0.9% AH. Sina's Q1 report will arrive "on or around" May 21.
Apr. 24, 2014, 4:50 PM
- Baidu (BIDU) expects Q2 revenue of RMB11.82B-RMB-12.11B ($1.901B-$1.948B), above a consensus of RMB11.55B.
- Revenue growth accelerated to 59.1% in Q1 from 50.4% in Q4. Online ad customers fell 1.1% Q/Q to 446K after falling 2.8% in Q4, but revenue per ad customer remained steady Q/Q and rose 44.1% Y/Y to RMB20.9K ($3,362).
- As promised, Baidu continues to invest aggressively: SG&A spend soared 136.9% Y/Y to $323.2M, thanks in large to mobile promotional efforts. R&D spend rose 57.5% to $205.4M.
- Traffic acquisition costs rose to 12.4% of revenue from 12.3% in Q4 and 10.2% a year ago. Content costs (fueled by online video licensing) rose to 4.1% of revenue from 3.8% in Q4 and 1.6% a year ago.
- Up in sympathy: SINA +1.6%. SOHU +1%. QIHU +2.6%. YY +1.1%. WB +1.5%. YOKU +1.7%.
- Q1 results, PR
Apr. 24, 2014, 11:11 AM
- The Chinese government has revoked Sina's (SINA -5.8%) online publishing and video licenses after finding articles and videos posted on Sina.com that contained "lewd and pornographic content."
- For the time being, Sina.com is fully operational. A government official tells Xinhua it's not certain when the punishment will be implemented, and that Sina should have the chance to appeal. Sina's Weibo unit has already run afoul of regulators plenty of times.
- Sina's shares are off sharply on a down day for Chinese Internet stocks.
Apr. 17, 2014, 4:20 PM
- Though pre-IPO demand was muted (leading to conservative pricing) and initial trading wasn't impressive, Weibo (WB +19.1%) and Leju (LEJU +18.6%) closed up strongly. The former is now worth $4.05B (21x sales), and the latter $1.57B (4.7x sales).
- Sina (SINA +6.7%) managed to follow Weibo higher, but E-House (EJ -5%) couldn't get a similar lift from Leju.
- Chinese Internet companies with upcoming IPOs - the list includes JD.com, Jumei.com (JMEI), and Cheetah Mobile - are likely breathing sighs of relief.
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