For the year 2016, Sina estimates that its non-GAAP net revenues will reach between USD 950 million and USD 1 billion, which is updated from a range of USD 850-950 million and represents a 9-15 percent year-on-year increase. Commonwealth Equity Services Inc now owns 9,094 shares of the company’s stock worth $431,000 after buying an additional 149 shares in the last quarter.
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The Shanghai-based internet media company posted a 270 per cent increase in second-quarter net profit to US$43.3 million, up from US$11.7 million in the same period last year, on advertising revenue that grew 16 per cent year on year to US$205 million.
For the third quarter, Weibo has forecast revenue to be between US$168 million and US$173 million.
The quarter ended with $2.1 billion in cash, equivalents, and short-term investments, and $797.9 million in convertible debt. Average daily active users in June grew 36 percent annually to 126 million.
Weibo’s monthly active users hit 282 million in the June quarter, a 33 percent increase from a year ago, with 89 percent of users accessing the platform through mobile devices. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. The company posted revenue of $241.40 million in the period, compared to analysts expectations of $230.91 million.
Charles Chao Guowei, the chairman and chief executive at Sina, said Weibo’s momentum was helped by “the effective channels we have built for user penetration and the optimised user experience we have cultivated in short video and live contents consumption”. The company reported $0.16 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.11 by $0.05. This estimate assumes that RMB depreciates to United States dollar at an average rate of 5% in 2016 and excludes the recognition of $10.4 million in deferred license revenues fromE-House.
Several brokerages have recently issued reports on WB. Goldman Sachs Group Inc. lowered Weibo Corp from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $20.00 to $22.00 in a report on Monday, May 16th. Buying continues as the stock moves higher, suggesting a strong appetite for the stock.
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An early internet pioneer in China, Sina was founded in 1999 from the merger of Stone Rich Sight Information Technology Co., a Beijing software company, and Sinanet.com, a California-based company that ran internet sites targeted at Chinese overseas. The company’s operating leverage also helped deliver outsize profit growth. It operates through the following segments: Advertising, Mobile Value-Added Services (MVAS), and Other Non-Advertising Information.
