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5 Reasons Why This Chinese Growth Stock Is Doomed

By Kevin Chen - Apr 16, 2013 at 8:00PM

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SINA lags Tencent's active and registered users, penetration, demographics, all while Renren and Netease continue to be threats.

While the media continues to call SINA (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: 

  1. SINA Weibo's daily active users may be exaggerated.
  2. Its registered users lag that of competitor Tencent (TCEHY 2.96%) Weibo.
  3. Its penetration rate trails Tencent Weibo.
  4. Its geographic make-up isn't poised for China's economic growth. Meanwhile, Tencent Weibo is.
  5. Renren (RENN 0.90%), the "Facebook of China," and gaming portal NetEase (NTES 4.05%) 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.

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Stocks Mentioned

SINA Corporation Stock Quote
SINA Corporation
SINA
NetEase, Inc. Stock Quote
NetEase, Inc.
NTES
$101.44 (4.05%) $3.95
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
FB
$189.29 (2.97%) $5.46
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,154.96 (1.84%) $38.86
Renren Inc. Stock Quote
Renren Inc.
RENN
$28.05 (0.90%) $0.25
Tencent Holdings Limited Stock Quote
Tencent Holdings Limited
TCEHY
$43.83 (2.96%) $1.26

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

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