SINA (Nasdaq:SINA) is about to release earnings. Ponder this Bear Case Scenario:
Switch costs for internet users are very low. customers come and go as they want and when they want.
Brand advertising is in supposed decline. Advertisers want targeted transactional based advertising. SINA is not excelling in this category.
SINA is very reliant on Brand advertising. In a downturn this business craters. SINA is not diversified away from this risk.
George Gutowski writes from a caveat emptor perspective.