November 16, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SINA (NASDAQ: SINA ) have plunged by as much as 16% today after the company reported earnings with soft guidance.
So what: Non-GAAP revenue in the third quarter came out to $147.7 million, which resulted in non-GAAP earnings per share of $0.17. SINA's Weibo micro-blogging service is off to a strong monetization start, with ad revenue doubling sequentially. The company began sharing revenue with developers.
Now what: Those figures were ahead of Street forecasts, but SINA's guidance left a lot to be desired. Fourth-quarter adjusted revenue is expected to be in the range of $132 million to $136 million, well short of the $152 million that analysts and investors were hoping for. Citi downgraded the stock by two notches, from buy to sell, in the wake of the results.
Interested in more info on SINA? Add it to your watchlist by clicking here.