After posting strong results in 2008, SINA Corp. (SINA) posted weak financial results for 2009, due to dismal macroeconomic conditions. Both its revenue and EPS were below the year-ago levels.
The fourth quarter of 2009 brought the company’s first loss in years and was well below the Zacks Consensus Estimate. The company also provided a weak outlook for the first quarter of 2010, as a result of slowdown in the Chinese economy, the global financial and credit market crisis and low visibility for its advertising business.
SINA has disappointed us of late and for the near term we do not expect SINA to witness growth. We advise investors to avoid the stock and downgrade SINA to Underperform.Zacks Investment Research
