On Nov 13, 2013, Zacks Investment Research upgraded
SINA Corp. (
to a Zacks Rank #1 (Strong Buy). With a strong return of 61.3%
over the past one year and a positive estimate revision trend,
SINA is an attractive investment opportunity.
DIGITAL RIVER (DRIV): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
QIHOO 360 TECH (QIHU): Free Stock Analysis
SINA CORP (SINA): Free Stock Analysis Report
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Why the Upgrade?
Upbeat third quarter results and strength in Weibo contributed to
the upgrade. Weibo's daily active user (DAU) base increased 11.2%
to 60.2 million from the month of June to September. This was
much better than 8.2% growth reported during the March-June
SINA reported third quarter earnings of 35 cents per share that
were well ahead of the Zacks Consensus Estimate of 17 cents and
the year-ago figure of 8 cents. SINA's partnership with the
Alibaba group contributed significantly to the company's overall
Revenues surged 21.2% year over year to $184.6 million and
exceeded the Zacks Consensus Estimate of $181.0 million. The
year-over-year growth in revenues was primarily driven by higher
revenues from online advertising and fee-based services.
Advertising revenues moved up 25.7% from the year-ago quarter to
SINA expects revenues for the fourth quarter of 2013 to be in the
range of $190.0 million and $194.0 million. Advertising revenues
are expected in the range of $160.0 million-$162.0 million, while
non-advertising revenues are projected in the range of $30.0
The Zacks Consensus Estimate for fiscal 2013 increased 33.3% to 8
cents per share as most of the estimates were revised higher over
the last 60 days. For fiscal 2014, the Zacks Consensus Estimate
increased 19.3% to $1.42 per share.
The long-term expected earnings growth rate for SINA is 22.5%.
Other Stocks to Consider:
Investors can also consider other stocks that are doing well
right now. These include
Qihoo 360 Technology (
Digital River (
. While Qihoo and Digital River carry a Zacks Rank #1 (Strong
Buy), Facebook carries a Zacks Rank #2 (Buy).