The Chinese dot-com darling posted mixed results in its latest quarter. SINA's adjusted top line grew 23% to $128.7 million, but its adjusted profit was shaved by more than half to $0.21 a share.
Analysts saw this coming. Ironically enough, it's actually SINA's non-GAAP revenue that fell short of the $129.3 million that Wall Street was targeting. The pros nailed the bottom line.
It's not easy being SINA. The company's throwing a lot of money at its fast-growing Weibo site that has emerged -- for better or worse -- as the Twitter of China.
SINA has also been nibbling on some of its publicly traded peers. It acquired a 9% stake in video-sharing website Tudou
It's sitting on a potential gold mine with Weibo, but might it be a land mine instead? Chinese regulators are pondering ways to put the clamps on China's Web 2.0 darlings.
This is a problem that won't go away until the government makes a decision. Renren
SINA is projecting $101 million to $104 million in non-GAAP revenue for the current quarter. Yes, that's considerably below SINA's fourth-quarter showing, but there is seasonality in cyberspace when it comes to the world's most populous nation. However, SINA's top-line prognosis is still quite light, representing a mere 6% to 9% year-over-year advance.
Now that SINA's top line is starting to decelerate, investors better hope that its bottom line is ready to shine again.
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.