Sina, Weibo Stocks Tumble After Quarterly Reports
Sina Corp. (Nasdaq: SINA) posted lower-than-expected financial results for the first quarter, sending its shares down 12 percent to $41. 83 apiece in New York trading Thursday. The stock of its media arm, Weibo Corp. (Nasdaq: WB), plunged 14 percent to $43.98 apiece.
A Beijing-based online media company, Sina said its net revenues increased by 8 percent in the three months through March to $475.1 million from the corresponding period of 2018. Its first quarter net income increased by 15 percent to $33.1 million, or 46 cents per American depositary share, compared with $28.7 million, or 38 cents per ADS, year-over-year.
Advertising revenues accounted for 82 percent of the total revenue, where the Weibo advertising and marketing revenues contributed 13 percent growth. The profit from Weibo was partially offset by a decrease of portal advertising revenue, whose revenue in the first quarter suffered a decrease of 27 percent from the same period of 2018.
Regarding non-advertising business, an 18 percent increase with revenue of $87.1 million was attained primarily due to Weibo's live streaming business acquired in the fourth quarter of 2018 and Sina FinTech businesses.
Weibo, China's version of Twitter, in which Sina holds a stake of 46 percent, announced a 14 percent increase in net revenues year-over-year to $399.2 million. Net income of Weibo for the first quarter was $150.4 million, or 66 cents per ADS, up 50 percent from $99.1 million, or 44 cents per ADS, a year ago.
"Weibo has delivered solid traffic growth through effective product upgrade and channel investment," Gaofei Wang, the chief executive officer of Weibo said in a statement.
Looking ahead, Weibo reported lower-than-expected guidance for the second quarter. It said it expects to generate revenue in the range of $427 million to $437 million, an increase of 7 percent to 10 percent year-over-year, which is about 10 percent below the $483.93 estimate from the Wall Street.
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