Recently, I have been talking with an investment bank analyst about Sina. I asked how he valued Sina’s Weibo (its miniblog or microblog services). He said he will give its portal business 30 times PE or about US$30 per share. Its wireless business about US$2. And another US$5-6 for its other business (apart from Weibo). It has US$13 in cash per share. That means excluding Weibo, Sina should worth about US$50. Currently, Sina is trading at about US$117. Therefore, investors are giving 57% of Sina’s valuation to its Weibo alone, or about US$ 4 billion dollar!!
Is it too much for something has yet to prove its business model?? Revenue from Weibo is still tiny at the moment.