Sina Corp (SINA) has surprised investors by announcing it made a loss in the second quarter.
The company, which is behind China's biggest micro-blogging site, revealed in a statement that it made a loss of $11.5 million (£7.4 million) compared to a profit of $33.2 million a year earlier.
With analysts having predicted that there would be a net profit for the firm, this proved to be a bad piece of news for the company.
Charles Chao, chairman and chief executive of Sina, insisted that the organisation remains in a good position for more profitable revenue growth while making heavy investments for the future".
Sina's micro-blogging service has more than 500 million users, but the company is facing growing competition from rival Tencent, which recently launched a massively popular mobile messaging service called WeChat.
Despite the surprise loss posted by Sina Corp, its share price remains well above the one-year target for the firm.
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The company, which is behind China's biggest micro-blogging site, revealed in a statement that it made a loss of $11.5 million (£7.4 million) compared to a profit of $33.2 million a year earlier.
With analysts having predicted that there would be a net profit for the firm, this proved to be a bad piece of news for the company.
Charles Chao, chairman and chief executive of Sina, insisted that the organisation remains in a good position for more profitable revenue growth while making heavy investments for the future".
Sina's micro-blogging service has more than 500 million users, but the company is facing growing competition from rival Tencent, which recently launched a massively popular mobile messaging service called WeChat.
Despite the surprise loss posted by Sina Corp, its share price remains well above the one-year target for the firm.
Learn about the Asian markets and CFD trading at City Index
Disclosure: FX Solutions assumes no responsibility for errors, inaccuracies or omissions in these materials. FX Solutions does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FX Solutions shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.
The products offered by FX Solutions are leveraged products which carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.