WB - Are These Two Unloved Tech Stocks Ready to Rebound?
SINA (NASDAQ: SINA) and Weibo (NASDAQ: WB) both reported first-quarter numbers on Tuesday that beat analysts' expectations. Both Chinese tech stocks initially rallied, but subsequently gave up their gains as the broader market petered out.
SINA spun off Weibo in an IPO six years ago, but the Chinese internet company still generates most of its revenue from the social network. Weibo also still integrates SINA's portals into its own platform. In other words, the two companies remain joined at the hip.
Over the past three years, SINA's stock has plunged over 60% and Weibo's stock has tumbled over 50%. Both companies struggled with tougher competition in China's crowded advertising market, the Chinese economy's slowdown, censorship challenges, and the COVID-19 crisis.