Despite the restrictions and privacy issues threatening Chinese micro-blogging sites, the top Chinese micro-blogs are seeing a continued increase in their user base as well as user activity. Sina (NASDAQ:SINA) Weibo’s user base has expanded to 250 million users over the years, which is lower than Twitter’s 300 million strong user base. But Sina has overtaken Twitter, the god father of micro blogging, in terms of another metric – updates per second. Sina Weibo registered a high of 32,312 posts per second on Chinese New Year, which beats Twitter’s record of 25,088 tweets per second. [1]
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Sina competes primarily with Tencent Weibo, which has 300 million registered users, and similar offerings by other players like Sohu (NASDAQ:SOHU), Baidu (NASDAQ:BIDU) and NetEase in the display advertising space.
It generates a majority of its revenue from display advertising on Sina.com and Weibo.com. It has been trying to diversify its revenue sources. It recently added a new virtual currency – Weibi – which can be used to purchase items on Weibo. Recently, it also launched a new premium membership service for Weibo users to generate additional revenue.
Our current $50 Trefis price estimate for Sina stands nearly 20% below its current market price.
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