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3 Key Reasons to Buy This Tech Company

By Kevin Chen - Apr 15, 2013 at 5:00PM

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Why buy SINA? Big start-up culture and partnerships with Apple and Baidu.

SINA (SINA) stock is down over 20% over the past year, continuing a downturn that started about two years ago. While there are plenty of reasons to remain bearish on China's main Twitter-like service, there are just as many reasons to be bullish about SINA's profit-earning potential over the long term.

In the video below, Fool contributor Kevin Chen details three key reasons:

  1. SINA's basically a big start-up with a risk-taking culture. It's not afraid to experiment as evidence by two new ventures.
  2. SINA has struck a key partnership with Apple. Now, once China Mobile (CHL) begins subsidizing Apple's (AAPL 2.32%) iOS devices, SINA is sure to benefit.
  3. SINA has joined with Baidu to help power the search giant's cloud services and mobile operating system. While Baidu (BIDU 14.14%) has hit a rough patch, the company is still the 800-pound gorilla in the room, so once Baidu's fortunes improve, SINA is well positioned to skyrocket, too.

To learn more about the bullish case for SINA, watch the video below.

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$143.78 (2.32%) $3.26
China Mobile Limited Stock Quote
China Mobile Limited
Alphabet Inc. Stock Quote
Alphabet Inc.
$2,155.85 (1.88%) $39.75
Baidu, Inc. Stock Quote
Baidu, Inc.
$136.19 (14.14%) $16.87
SINA Corporation Stock Quote
SINA Corporation

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

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