Shares of Chinese Internet giant Sina Corp. (SINA) are trading up almost 30% year-to-date (YTD) at a price of $62.13 per share.

The digital media giant saw its stock take off in September due to announcement of a Weibo share distribution, as analysts upped the firm’s price target due to a valuation gap between Sina and its largest asset in ultra-high-growth micro-blogging platform Weibo Corp. (WB). Later in November, the leading Chinese internet portal posted a quarterly earnings beat, posting non-GAAP earnings per share (EPS) up 51% and net revenues up 21%.

Weibo Growth Sends Stock Up

In September, trading volume of Sina spiked more than quadruple its three-month average after an announcement that it would distribute shares of Weibo on a pro-rata basis. Weibo, known as the Chinese Twitter, has seen its stock soar 118% in 2016.

Analysts foresee an upside for Sina shareholders, as CEO Charles Chao says he is “open to further unlocking value in the company,” perhaps via further Weibo share distributions. Analysts at HSBC foresee Weibo further benefiting from its partnership with minority stakeholder Alibaba Group (BABA), set to drive the blogging platform’s ecommerce strategy. (See also: Sina Volume Peaks on News of Weibo Share Distribution.)

Sina’s most recent third-quarter results sent the stock up, as investors applauded non-GAAP EPS of $0.56 on revenues of $274.9 million. Analysts foresee Sina benefiting from the monetization of Weibo’s social media platform, as the firm grows its monthly active users 34% year-over-year (YOY) to 297 million back in September. (See also: Sina Corp’s Q3 Beats Estimates.)

In light of overall market turbulence in China, Sina stock has cooled down from October highs, falling almost 20% in the most recent three-month period.  

 

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