Sina Corp records Q2 loss

<p>Sina made a loss in the second quarter.</p>

Sina Corp has surprised investors by announcing it made a loss in the second quarter.

The company, which is behind China's biggest micro-blogging site, revealed in a statement that it made a loss of $11.5 million (£7.4 million) compared to a profit of $33.2 million a year earlier.

With analysts having predicted that there would be a net profit for the firm, this proved to be a bad piece of news for the company.

Charles Chao, chairman and chief executive of Sina, insisted that the organisation remains in a good position for more profitable revenue growth while making heavy investments for the future".

Sina's micro-blogging service has more than 500 million users, but the company is facing growing competition from rival Tencent, which recently launched a massively popular mobile messaging service called WeChat.

Despite the surprise loss posted by Sina Corp, its share price remains well above the one-year target for the firm.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.