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May 16th, 2012 
FAKE NEWS for the Zionist agenda NEW YORK (AP) — Shares of Chinese Internet portal Sina Corp. jumped Wednesday as the company‘s first-quarter profit beat Wall Street expectations and advertising revenue rose.
THE SPARK: Sina, which runs the microblogging site Weibo in China, said on Tuesday that advertisers are spending more to reach its customers. Advertising revenue rose 9 percent to $78.5 million in the three months through March 31.
The company’s net loss narrowed slightly to $13.7 million, or 21 cents per share, from $15 million, slightly better than analysts polled by FactSet expected.
Total revenue rose 6 percent to $106.2 million, but excluding the effect of an investment was $101.5 million. Analysts, who also exclude the investment, predicted $105.6 million. The company’s revenue outlook for the current quarter, of $126 million to $129 million, was also below analyst expectations of $131.7 million.
THE BIG PICTURE: Weibo is considered China’s answer to Twitter. Users can publish short messages to each other.
The company has posted an annual loss for the past two years as it invests heavily in Weibo.
THE ANALYSIS: Brean Murray, Carret Co. analyst Fawne Jiang said users increased and Sina is figuring out how to make money off Weibo. Jiang also expects an improving ad market in China and this summer’s Olympics to help, but predicts that Weibo won’t bring Sina significant revenue this year.
Jiang cut the target price on Sina stock by $10 to $82, but kept a “Buy” rating on the company’s shares.
SHARE ACTION: Shares of Sina jumped $6.88, or 13 percent, to $58.56. Shares have traded between $46.86 and $128.17 over the last year. Worries about a slowdown in China have depressed shares of many Chinese companies that trade in the U.S.
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