The stock in Sina Corp. (Nasdaq: SINA) and its media arm, Weibo Corp. (Nasdaq: WB), moved up and down Wednesday morning on its downsized income and downside outlook.
Sina, a Beijing-based online media company, reported in a statement Wednesday that its revenue increased by 4% in the three months through December to $593 million from the corresponding period of 2018.
Its fourth-quarter net loss was $175 million, or $2.53 per American depositary share, compared with its net income of $16 million, or 22 cents per share, year-over-year.
The revenues from Sina's core advertising business declined 5 percent to $461 million in the second quarter, offset by a nearly 50% rise in revenues from non-advertising services.
Social media Weibo, a subsidiary of Sina, announced a 3% decrease in net revenues year-over-year to $468 million. Net income of Weibo for the fourth quarter was $95 million, or 42 cents per share, down 43% from $166 million, or 73 cents per share, a year ago.
Weibo’s core advertising and marketing revenues hit $406 million, down 3% year-over-year.
China’s twitter said in the statement that it anticipates its first quarter of 2020 net revenues to decrease by 15% to 20% year-over-year on a constant currency basis to $331 million and $339 million due to the coronavirus impact.
“Our user base and engagement grew robustly as we remained focused on improving user product and optimizing content consumption experience,” Gaofei Wang, the chief executive officer of Weibo, said in the statement.
The operation data in the earnings report, however, showed a different picture where Weibo’s new users addition slowed down. Weibo added 54 million monthly active users in the fourth quarter, down 23% from 70 million addition in 2018 Q4.
Average daily active users for Weibo were 222 million in December with a net addition of approximately 22 million users, down 21% year-over-year from 28 million addition one year ago.
Shares in Sina were trading at $32.25 per share Wednesday morning, while Weibo’s stocks were trading at $43.54 per share and both of them stayed almost unchanged Wednesday morning.