What happened
Shares of SINA Corp. (NASDAQ: SINA) were down 10.2% as of 3:30 p.m. EDT Wednesday despite strong first-quarter 2018 results from the Chinese internet media company.
More specifically, SINA's net revenue climbed 59% year over year to $440.8 million, which translated to adjusted (non- GAAP ) net income of $35.2 million, or $0.47 per share. Both the top and bottom lines arrived ahead of investors' expectations for earnings of $0.42 per share on revenue of $433.3 million.
IMAGE SOURCE: SINA.
So what
SINA Chairman and CEO Charles Chao called it a "good start" to the year, noting that the company enjoyed "robust" revenue growth and improved monetization from Weibo, in which it owns a majority stake, and continued progress with mobile monetization from its portal business.
To be sure, SINA's advertising revenue soared 61% year over year this quarter to $440.8 million, driven by a 79% increase in Weibo ad and marketing sales. And non-advertising revenue jumped 47% to $73.7 million, led by a combination of Weibo gaming and membership services, as well as sales from SINA's budding fin-tech business.
Now what
It's unclear, then, exactly why SINA is falling today -- though that's not entirely out of character for the stock. In fact, you might recall that SINA shareholders endured similar post-earnings plunges in spite of strong quarterly results multipletimes en route to the stock's 65% gain for all of 2017. And for perspective, SINA was already up more than 35% over the past year as of yesterday's close.
So while today's market reaction might not indicate as much, these results were undeniably impressive. And I think long-term SINA shareholders have no reason to be worried.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Sina. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
