Please ensure Javascript is enabled for purposes of website accessibility

Why SINA Corp. Stock Fell 10% Today

By Steve Symington - May 9, 2018 at 4:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Chinese web media leader dropped even after a stellar first quarter.

What happened

Shares of SINA Corp. (SINA) were down 10.2% as of 3:30 p.m. EDT Wednesday despite strong first-quarter 2018 results from the Chinese internet media company.

More specifically, SINA's net revenue climbed 59% year over year to $440.8 million, which translated to adjusted (non-GAAP) net income of $35.2 million, or $0.47 per share. Both the top and bottom lines arrived ahead of investors' expectations for earnings of $0.42 per share on revenue of $433.3 million.

SINA company logo in red and black

IMAGE SOURCE: SINA.

So what

SINA Chairman and CEO Charles Chao called it a "good start" to the year, noting that the company enjoyed "robust" revenue growth and improved monetization from Weibo, in which it owns a majority stake, and continued progress with mobile monetization from its portal business.

To be sure, SINA's advertising revenue soared 61% year over year this quarter to $440.8 million, driven by a 79% increase in Weibo ad and marketing sales. And non-advertising revenue jumped 47% to $73.7 million, led by a combination of Weibo gaming and membership services, as well as sales from SINA's budding fin-tech business.

Now what

It's unclear, then, exactly why SINA is falling today -- though that's not entirely out of character for the stock. In fact, you might recall that SINA shareholders endured similar post-earnings plunges in spite of strong quarterly results multiple times en route to the stock's 65% gain for all of 2017. And for perspective, SINA was already up more than 35% over the past year as of yesterday's close.

So while today's market reaction might not indicate as much, these results were undeniably impressive. And I think long-term SINA shareholders have no reason to be worried.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SINA Corporation Stock Quote
SINA Corporation
SINA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.