Will Sina Slip Through Investors' Fingers Yet Again?

Early this past March, I had written an article talking about the value Sina presented (trading below $70 per share), especially if one compares it to then newly-minted IPO, Snap. The article was written just after blow-out earnings from Sina for the December 2016 quarter.

This morning, Sina just reported another blow-out quarter with earnings of $0.50 per share (non-GAAP) versus the $0.14 per share expected by Street sell-siders. Revenues for the March quarter checked in at $278 million versus Wall Street consensus of $265 million.

"We started the year 2017 with a great quarter," said Charles Chao, CEO of Sina. "Weibo continued its strong momentum with accelerated growth in revenues and impressive expansion of user baseOn the Sina media business, our performance was in line with our expectation, taking seasonality factor into account. We have further restructured our mobile media business to accelerate the pace for the mobile transition." 

Weibo (its largest shareholder is Sina, followed by Alibaba) also reported its own set of blow-out numbers with revenues of $199 million and earnings of $0.26 per share versus Street consensus of $187 million and $0.21 per share respectively. Shares of Weibo were trading right around the $50 per share level when I penned the above linked article back in March.

Sina reported 42% revenue growth year-over-year. Online advertising growth was 40% also year-on-year while non-advertising revenues also grew 40% compared to the same period a year ago.

Shares of Sina are indicated higher by $8 per share or so on the bid side on volume of just under 145,000 shares.

It will be interesting to see whether investors will let yet another opportunity slip through their fingers today like they seemed to have done after the company reported December quarter earnings back in March.

Going into the earnings event, I had sold our near-term (expiring this coming Friday) Sina calls yesterday and rolled them over by purchasing further dated calls instead.

(Long sina, baba, calls on both)

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