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SINA’s Revenue Rises, Income Falls in 3Q15

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SINA’s price movement

SINA (SINA) has a market capitalization of $2.9 billion. SINA’s YTD (year-to-date) price movement has been a mix of rises and falls in 2015.

After its 3Q15 earnings report, SINA rose by 4.5% to close at $50.36 per share as of November 18, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are 4.9%, 9.2%, and 34.6%, respectively.

Technically, SINA’s stock has broken the support of its 20-day, 50-day, and 200-day moving averages a few times in 2015. Currently, SINA is trading 4.6% above its 20-day moving average, 15.0% above its 50-day moving average, and 19.6% above its 200-day moving average.

The Global X Social Media Index ETF (SOCL) invests 4.4% of its holdings in SINA. The ETF tracks a modified market-cap–weighted index of social media companies selected by the Structured Solutions Committee.

The YTD price movement of SOCL is 8.2% as of November 17, 2015. The PowerShares Golden Dragon China ETF (PGJ) invests 2.7% of its holdings in SINA.

SINA’s competitors and their market capitalizations are as follows:

  • Baidu (BIDU) — $70.8 billion
  • NetEase (NTES) — $20.3 billion
  • Sohu.com (SOHU) — $2.1 billion
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Performance of SINA in 3Q15

The company reported 3Q15 net revenues of $226.3 million, a rise of 13.9% when compared to net revenues of $198.6 million in 3Q14. Revenues from its Advertising and Non-Advertising segments rose by 15.9% and 3.1%, respectively, in 3Q15 as compared to the prior year’s period.

SINA’s cost of revenue as a percentage of revenue fell by 2.7% and its gross profit margin rose by 1.6% in 3Q15 compared to the prior year’s period. The company’s operating income rose to $14.7 million, and its income on the sale of impairment of investments fell to -$1.1 million in 3Q15, as compared to the operating income and income on the sale of impairment of investments of -$10.8 million and $128.6 million, respectively, in 3Q14.

The company’s net income and EPS (earnings per share) fell to $9.8 million and $0.16, respectively, in 3Q15, as compared to net income and EPS of $133.6 million and $1.91, respectively, in 3Q14. Its net revenue rose by 5.9% and its net income fell by 16.2% in 3Q15 on a quarterly basis.

SINA’s cash and cash equivalents rose by 2.1% and its short-term investments fell by 1.5% in 3Q15 on a quarterly basis. Its current ratio fell to 3.92, and its debt-to-equity ratio rose to 0.63 in 3Q15 as compared to its current and debt-to-equity ratios of 4.41 and 0.61, respectively, in 2Q15.

About SINA

SINA is an online media company. Its digital media network includes SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media).

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