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| The C hinese app Weibo's logo is displayed on a tablet on Jan 2, 2014 in Paris. (AFP PHOTO / LIONEL BONAVENTURE) |
BEIJING - Chinese social media giant Sina Weibo overtook its US counterpart Twitter in market capitalization for the first time ever during trading on Monday.
Nasdaq-listed Sina Weibo saw its market value rise to about US$11.32 billion at one point during trading on Monday, while that for Twitter, which is listed on the New York Stock Exchange, stood at about US$11.22 billion at the same time. It is the first time the Chinese microblog service has outperformed its US counterpart in market cap.
Sina Weibo's share price is expected to reach US$70 in mid-2017, thanks to its strong user and revenue growth
Sina Weibo's share price closed at US$52.91 per share while that for Twitter stood at US$16.73, with the former lagging behind the latter by about US$600 million at market close.
Financial reports for the second quarter of this year showed that Twitter raked in about US$602 million in Q2, more than quadruple that of Sina Weibo.
However, Sina Weibo showed stronger growth momentum in revenue and user growth. Twitter had about 313 million monthly active users by the end of Q2, up only three percent year on year, while Sina Weibo boasted 282 million monthly active users, surging 33 percent compared with Q2 2015.
Sina Weibo's share price is expected to reach US$70 in mid-2017, according to an estimate by international investment bank J.P. Morgan, thanks to its strong user and revenue growth.
