While the media continues to call SINA (NASDAQ: SINA ) Weibo China's main Twitter-like service, saying it doesn't make it so. Digging deeper into the numbers and looking at the broader social networking market, it seems like SINA stock will continue its two-year-and-counting decline.
In the video below, Fool contributor Kevin Chen details five reasons why SINA may be forever doomed:
- SINA Weibo's daily active users may be exaggerated.
- Its registered users lag that of competitor Tencent (NASDAQOTH: TCEHY ) Weibo.
- Its penetration rate trails Tencent Weibo.
- Its geographic make-up isn't poised for China's economic growth. Meanwhile, Tencent Weibo is.
- Renren (NYSE: RENN ) , the "Facebook of China," and gaming portal NetEase (NASDAQ: NTES ) threaten SINA Weibo's viability as a social network.
So before you try to profit from the growing microblogging market in China, watch the video below to learn more about the five things Wall Street overlooks when analyzing SINA.
If you're looking to profit from the Chinese economy but SINA's fortunes seem too opaque to read, then there may be opportunity in Baidu (aka the "Chinese Google"). In our brand-new premium report, The Motley Fool team breaks down the dominant Chinese search provider's strengths and weaknesses. To access it now, click here.