Sina Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of online media company Sina (NAS: SINA) fell 10% today on concerns that the company's earnings will be worse than expected.
So what:E-Commerce ChinaDangdang (NYS: DANG) is driving Chinese Internet stocks lower today after the company reported weak second-quarter earnings. Sina reports earnings Wednesday after the market closes, and there's concern the company will follow in Dangdang's footsteps.
Now what: We'll have to wait another day to hear exactly what Sina has to say, but the market will likely have a strong response for this volatile stock. Short interest has ballooned to more than 10% of Sina's float, and they'll either be proven right or be headed for the hills after earnings. With volatility very high right now, I would wait this out until after earnings when Sina should give us a clue whether its business is impressive or disappointing to investors.
Interested in more info on Sina? Add it to your watchlist.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of Sina. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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