Quick Win by the Algorithm: SINA Rides on Weibo’s Growth

Quick Win by the Algorithm

On May 29th, 2016, the I Know First algorithm issued a bullish forecast for SINA Corp. SINA had a signal of 566.84 and a predictability of 0.39. As a result, in accordance with the forecast, the company’s stock increased by 106.48% in a year, showing a quick win by the algorithm.

quick win

The Sina Corp is a Chinese media company servicing not only China but the Chinese diaspora. Through Sina’s four business outlets of Sina Weibo, Sina Mobile, Sina Online, and Sina.ne, users of all ages and income levels use can use Sina’s social media, international news, and  online brand advertising services.

quick win

SINA finished 2016 on a strong quarter, reporting a 17% increase in net revenue year over year to $1,030.9 million. Furthermore, SINA continued its strong earnings performance in 2017, reporting a 40% increase in net revenues year over year to $278.1 million for the first quarter. SINA’s implementation of its mobile and Weibo initiatives seems to have taken effect. Consistent growth at its subsidiary, Weibo continues to prop up SINA’s growth and outperformance. In particular, Weibo saw a 30% year over year increase in its user base, standing at 340 million active monthly users according its first quarter results. Weibo’s platform still holds huge growth potential, given China’s large population. SINA recently announced on May 26, 2017 that it will distribute Weibo shares to its shareholders on a pro-rata basis.

Riding on the growth of Weibo, Sina plans to go forward into 2017 with its mobile strategy. It will continue its investment in monetization and the expansion of the mobile user base of its portal business. Given SINA’s strong earning reports and expansion strategies with Weibo and its mobile business, we can see why its stock price saw a significant increase.

This bullish forecast on SINA was sent to current I Know First subscribers on May 29, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.