Sina, Weibo Stocks Soar on Earnings Beats, Buoyed by Anticipated Progress in Trade Talks
The stock in Sina Corp. (Nasdaq: SINA) skyrocketed more than 15 percent Monday, while shares in its media arm, Weibo Corp. (Nasdaq: WB), jumped 14 percent, fueled by better-than-expected earnings and anticipated progress in the U.S.-China trade talks.
Sina, a Beijing-based online media company, reported in a statement today that its revenue decreased by 1 percent in the three months through June to $533.1 million from the corresponding period of 2018. Its second-quarter net income increased by 46 percent to $51.4 million, or 73 cents per American depositary share, compared with $35.1 million, or 47 cents per American depositary share, year-over-year.
The revenues from Sina's core advertising business declined 5 percent to $433.6 million in the second quarter, offset by a 19-percent rise in revenues from non-advertising services.
Weibo, in which Sina holds a stake of 46 percent, announced a 1 percent increase in net revenues year-over-year to $431.8 million. Net income of Weibo for the first quarter was $103 million, or 46 cents per ADS, down 27 percent from $140.9 million, or 62 cents per ADS, a year ago.
Weibo said it had 486 million monthly active users as of June, noting an addition of 55 million users from a year ago, the majority of whom were mobile users.
Advertising and marketing revenue accounted for 86 percent of the total revenue, where the small and medium-sized enterprises, as well as key accounts, saw a two percent increase to $346.5 million from the corresponding period in 2018.
Looking ahead, Weibo said it estimates a revenue increase of between 6 and 9 percent in the third quarter year-over-year on a constant currency basis, while Sina did not provide guidance.
Markets bounced Monday after Trump administration said over the weekend that the sides are working together to end a trade war, though the U.S. President also said that he sees no trade deal at this time, as reported by Reuters. The three main indexes, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite, each gained approximately 1 percent shortly after the opening bell.
Shares in Sina jumped $5.80 to $43.45 apiece, while Weibo climbed $5.23 to $42.31 per ADS by close of trading Monday.
Ecmoho, a Health and Wellness Company, Raises $44 Million in New York IPO
IQiyi Stock Up 3% After-hours on Member Growth
36Kr Raises $20 Million in New York IPO; Stock Tumbles on Debut
Baidu Stock Soars 9% on Better-than-expected Results in Third Quarter
Nio and Intel to Jointly Launch L4 Model
AMC Shares Fall 5% on Losses, Low Ticket Prices