Trader Mark submits:
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Sina.com (SINA) is showing the first weakness in a while, on reports Facebook is entering China via a partnership with Baidu (BIDU). That said, after the initial (over)reaction which shaved about 7 points off the name, the stock has bounced back well in the afternoon.
(Click to enlarge)
(Click to enlarge)
The hit to Sina seems wrong for a few reasons - first there are already a handful of very significant social networking sites in China, 2 of which are expected to go public in the U.S. this year - and whose IPOs I expect to rocket. (in fact, the first ... Kaixin001.com has already secured the investment bankers) Second, Sina's platform is a peer of Twitter, not Facebook. That said, Baidu is a powerhouse in the country (in search) so this means more competition for everyone in the 'social communication' space. Baidu's stock is reacting favorably to the news, although off highs
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