5 Reasons Why This Chinese Growth Stock Is Doomed

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

NASDAQ: SINA

Sina

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:

SINA Weibo's daily active users may be exaggerated.
Its registered users lag that of competitor Tencent (TCEHY 3.56%) Weibo.
Its penetration rate trails Tencent Weibo.
Its geographic make-up isn't poised for China's economic growth. Meanwhile, Tencent Weibo is.
Renren (RENN), the "Facebook of China," and gaming portal NetEase (NTES -1.91%) 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.

Fool contributor Kevin Chen has no position in any stocks mentioned. The Motley Fool recommends Facebook, Google, NetEase.com, and SINA. The Motley Fool owns shares of Facebook and Google. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.