Investors who forgot to sign up for Twitter may have a second chance: In China.
Shares of the U.S.-based microblogging site have risen 33 percent since their November initial public offering on hopes that the industry's dominant player will continue to attract advertising dollars. By now, many investors probably feel late to the game, given that the profit-less company has a market capitalization of $44 billion, or a heady 39 times consensus earnings.
With all the buzz around Twitter, it has been easy to forget about its Chinese counterpart Weibo, which is 71-percent owned by Sina Corp. Shares of Sina, which trade in New York, have fallen 7 percent since Twitter's IPO, partly due to a general selloff in Asian markets in the last few weeks.
In turn, the market-implied valuation of Weibo has become seriously squeezed. BNP Paribas estimates Sina's other assets, including a portal business, equity stakes in companies including e-commerce giant Alibaba, plus some cash, are worth about $3 billion. That indicates Weibo is worth only $2.5 billion, or roughly 7 times BNP's estimated revenue for the microblogging site in 2014.