The end of Sina Corp. (NASDAQ:SINA)’s run?


Shares of SINA Corporation (NASDAQ:SINA) last traded at $103.14. The company’s performance year to date is 67.97%. The 200 day simple moving average is 42.67%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

As per recent filings, SINA Corporation (NASDAQ:SINA) has an insider ownership of 9.30%.

SINA Corporation is a leading online media company and value-added information service provider for China and for global Chinese communities. With a branded network of localized web sites targeting Greater China and overseas Chinese, SINA operates three major business lines including, SINA Online and, providing an array of services including online portals, premium email, wireless short messaging, virtual ISP, search, classified information, online games, e-commerce, e-learning and enterprise e-solutions.

SINA Corporation (NASDAQ:SINA) has been storming Wallstreet with solid press release. Recently, the company announced that according to the March 2017 study commissioned by RetailMeNot and conducted by Forrester Consulting, the company’s mobile marketing solutions generate a three-year, risk-adjusted return on investment (ROI) of 4.3x.

The Barchart Technical Opinion rating is a 100% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend. The market is in highly overbought territory. Beware of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 94.47 and 77.28 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term. .

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 87.02 suggesting a bullish price action.

SINA Corporation (NASDAQ:SINA) is all set to announce its earnings on May 16/b. As per Zack’s analyst ratings, SINA Corporation (NASDAQ:SINA) currently has an average brokerage rating of 1.4. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:SINA) is $114.4 with a high of $136 and a low of $92.

Sina Corp. (NASDAQ:SINA) on Tuesday posted better-than-expected first quarter revenue and profit, boosted by strong performance at its subsidiary Weibo Corp. (NASDAQ:WB) Adjusted quarterly revenue rose 40% year-over-year to $275.5 million. Analysts had anticipated adjusted earnings of $0.14 per share on revenue of $265.1 million. Strong result in both advertising segment and non-advertising segment drove the revenue growth. The company also said gross margin rose to 69 percent from 59 percent a year earlier. Weibo, a Chinese microblog launched by Sina in 2009, reported its first-quarter results separately on the same day. Beijing-based Weibo said first-quarter profits surged 254% to $57.8 million, or $0.26 per share, compared with $0.07 per share a year earlier. Revenue rose 67% to $199.2 million in the quarter ending March 31. Monthly active users in March 2017 rose 30 percent to 340 million year-over-year, 91 percent of which were mobile users. Sina’s shares jumped 17.85 percent on Tuesday, while Weibo’s shares were up nearly 25 percent.

As such, while we believe SINA Corporation (NASDAQ:SINA) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

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