- Sina (SINA) shares are trading lower this morning after Goldman Sachs analyst Catherine Leung cut her rating on stock to Neutral from Buy, asserting that the implied valuation for Weibo, its Twitter-like mini-blog platform, has reached $2 billion, based on her estimate of the valuation of the rest of the company’s businesses. And that, she suggests, is plenty.
- “Although we believe Sina has maintained Weibo’s solid user-growth momentum and encouraged its ecosystem development through apps and improved functionality, thereby also improving Sina’s portal properties, we see limited upside to Weibo’s valuation because monetization remains in an early, more exploratory stage,” she writes. Adds Leung: “We see limited upside to the stock until Weibo is monetized more meaningfully.”
[Jan 11, 2011: Word is Getting Out on Sina's Secret - Weibo]
[Dec 9, 2010: The Twitter of China - Weibo]