As Chinese internet company falters, concerns about online growth emerge

Sina (SINA) owns one of the most visited portals in China. It reported good earnings for the last quarter, up 40 percent. But its forecast was troubling. According toThe Wall Street Journal, "the owner of China's largest Web portal issued a weak first-quarter revenue outlook as the economy hit advertisers."

That news is bad for two reasons. The first is that it could push the company's share price down. At less than $21 it is already near a 52-week low, down from a period high of $58.60.

But even worse, given Sina's size, its forecast says that online advertising in China is slowing. Since Sina serves thousands of advertisers across almost every large sector in the economy, it is a reasonable proxy for how business activity in the world's most populous country is doing. The answer is "not very well." China's economic growth may be decelerating more than many economists believe.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Read Full Story


DJIA 24,676.23 -71.84 -0.29%
NASDAQ 7,265.58 -29.66 -0.41%
S&P 500 2,697.94 -10.70 -0.40%
NIKKEI 225 22,191.18 32.98 0.15%
HANG SENG 30,708.44 424.19 1.40%
DAX 12,556.84 -33.99 -0.27%
USD (per EUR) 1.24 0.00 0.00%
USD (per CHF) 0.97 0.00 -0.10%
JPY (per USD) 107.36 0.01 0.01%
GBP (per USD) 1.42 0.00 0.23%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.