Why SINA Corp. Stock Popped Tuesday

By Steve SymingtonMarketsFool.com

Image source: SINA Corporation.

Continue Reading Below

What happened

Shares of SINA Corp. (NASDAQ: SINA) closed up 10% Tuesday after the Chinese online media company announced stronger-than-expected third-quarter 2016 results.

So what

More From Fool.com

Adjusted quarterly revenue climbed 21.7% year over year to $272.3 million, driven by 21% growth in online advertising revenue to $233.6 million. More specifically, online ad revenue growth was driven by a $47.8 million increase in Weibo advertising and marketing revenue, and partially offset by a $7.7 million decline in portal ad revenue.

On the bottom line, that translated to 79.1% growth in adjusted net income, to $43.7 million, and 43.6% growth in adjusted net income per share, to $0.56.

By comparison -- and though we don't usually pay close attention to Wall Street's near-term expectations -- analysts' consensus estimates predicted lower adjusted revenue and earnings of $265.3 million, and $0.35 per share, respectively.

SINA CEO Charles Chao stated the company is "delighted" with its performance, elaborating:

Now what

As it stands, this was a fairly cut-and-dried quarterly beat from SINA as it progresses on the monetization of its web properties in today's increasingly mobile market. If SINA can sustain this upward business momentum going forward, I suspect the value of its shares will continue to follow suit.

10 stocks we like better than Sina When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Sina wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of Nov. 7, 2016

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Sina. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.