Goldman Sachs Downgrades SINA Corporation (SINA) to Sell, Sees 26% Downside
SINA Hot Sheet
Rating Summary:14 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Goldman Sachs downgraded SINA Corporation (NASDAQ: SINA) from Neutral to Sell citing unfavorable risk-reward. The price target was raised from $78 to $105, suggesting 26% downside.
The analyst believes the stock is now being mainly driven by expectations that Weibo will evolve from a social media into a fully fledged social network, which they say will be "challenging."
"In our new analysis, we believe the most likely outcome is for Weibo to become an alternative loosely-engaged social network weighted toward its distinctive social media elements, and for Tencent Pengyou to become the dominant social network in China by leveraging its much larger QQ community and more developed platforms."
For more ratings news on SINA Corporation click here and for the rating history of SINA Corporation click here.
Shares of SINA Corporation closed at $142.83 yesterday, with a 52 week range of $32.00-$147.12.
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The analyst believes the stock is now being mainly driven by expectations that Weibo will evolve from a social media into a fully fledged social network, which they say will be "challenging."
"In our new analysis, we believe the most likely outcome is for Weibo to become an alternative loosely-engaged social network weighted toward its distinctive social media elements, and for Tencent Pengyou to become the dominant social network in China by leveraging its much larger QQ community and more developed platforms."
For more ratings news on SINA Corporation click here and for the rating history of SINA Corporation click here.
Shares of SINA Corporation closed at $142.83 yesterday, with a 52 week range of $32.00-$147.12.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
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Goldman SachsComments
No Clues
This analyst clearly has no clues.
Sina
Weibo is much more popular than pengyou and ren ren. Saying tencent will overtake weibo is like saying msn messenger should overtake twitter or Facebook. Now does anyone use msn messenger's msn spaces or blogs even when it's so conveniently integrated? People will QQ for communication, baidu for search and weibo for social media. Sina's price is high but it might be worth it for weibo
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BIDU
Nadal on Apr 21, 2011 08:41 PMMark as Spam
I still remember GS downgrade for BIDU two years ago, look where is Bidu now.
Never trust these analyst, do your own researh