Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

SINA Corp (SINA),, Inc. (SOHU), and, Inc. (ADR) (BIDU) Are Doing Just Fine

SINA Corp (NASDAQ:SINA) is holding up better than the worrywarts were expecting.

The Chinese dot-com pioneer delivered a blowout quarter last night. Adjusted revenue climbed 4% to $134.4 million, as online advertising inched 7% higher. Outside of SINA’s bread-and-butter online advertising revenue, healthy growth in its monetization efforts for its Weibo micro-blogging website wasn’t enough to offset a sharp drop in its original mobile value added services business.

SINA Corp (NASDAQ:SINA)The news gets better — at least as it pertains to Wall Street forecasts — on the way down the income statement. Gross margins actually improved, and SINA’s adjusted earnings of $0.13 a share landed well ahead of the mere $0.05 a share that analysts were targeting.

Investors probably could’ve seen this coming., Inc. (NASDAQ:SOHU) reported a better-than-expected 6% year-over-year increase in brand advertising when it reported earlier this month.

Sure, these are small spurts compared to the 42% top-line pop that, Inc. (ADR) (NASDAQ:BIDU) posted the day of’s report, but we can’t compare the companies. Baidu’s specialty is paid search. SINA and — two of the oldest publicly traded Chinese Internet companies — rely on the more traditional display advertising.

Baidu even got beaten up post-earnings despite that huge pop. Guidance didn’t meet expectations, and Mr. Market punished the search speedster, perhaps unfairly.

The strong SINA quarter bodes well for Youku Tudou Inc (ADR) (NYSE:YOKU) and Renren Inc (NYSE:RENN), as China’s leading video-sharing site and social networking website operator, respectively, are set to report fresh financials in early March.

SINA and do more than merely dabble in online video and social media. SINA had a healthy stake in Tudou when it was combined with Youku.’s investment in online video and SINA’s investment in social media have also been a drag on earnings growth at both companies.

However, the fact that earnings are deteriorating as quickly as Wall Street was predicting is naturally a good thing for SINA.

The current quarter will be challenging. SINA is calling for a sharp sequential decline in revenue. However, this is a seasonal business. The $115 million to $119 million that SINA is now projecting is actually a double-digit year-over-year increase. Wall Street already saw this coming, perched in the middle of the action with a forecast for $117.4 million.

Investors will want to wait until Youku Tudou and Renren report next month to get the complete snapshot of China’s online advertising market, but first wave of reports has held up surprisingly well.

The article SINA,, and Baidu Are Doing Just Fine originally appeared on and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends Baidu, SINA, and The Motley Fool owns shares of Baidu.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!