Why Are SINA Shares On Fire?
SINA Corp. (NASDAQ:SINA) shares are up 11.63% today, now trading at $86.65, well above their 200 day moving average of $82.80. SINA shares reached a 52-week high in April of $147.12 a share after making fairly consistent gains over the last year, but have plummeted since. One reason for the sudden surge might be that SINA makes up 8.49% of the Guggenheim China Technology ETF (AMEX:CQQQ), which is trading up 3.2% on the day Tuesday, meaning SINA might just be along for the ride.
It’s also possible SINA is a big part of why the ETF is up. After its recent significant decline, Susquehanna called it a great buying opportunity and rated the stock a “Buy” with a price target of $136 per share, well above its current trading price even after the spike. SINA is most commonly referred to as the “Chinese Twitter”, and despite lagging shares, is still up 17.42% in the last six months, and 125.13% year-over-year, trading at just $38.34 this date last year. So with shares suddenly taking a drop, it was the perfect chance for investors to buy before they inevitably turn upward.
Competitors to Watch: Sohu.com Inc. (NASDAQ:SOHU), Baidu.com, Inc. (NASDAQ:BIDU), Google Inc. (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), NetEase.com, Inc. (NASDAQ:NTES), Youku.com Inc (NYSE:YOKU), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), Rediff.com India Ltd. (NASDAQ:REDF), and AOL, Inc. (NYSE:AOL)