Goldman Downgrades The Hottest Internet Stock On The Planet

Goldman Sachs has just downgraded Chinese portal Sina to Sell from Neutral, because the potential of its hugely popular Twitter clone Weibo is fully priced in.

Sina is a traditional portal but it also created and owns Sina Weibo, the most popular Twitter clone by far, which has seen an explosion of activity. Weibo has actually evolved into a much richer experience than Twitter.

Over the past year Sina’s stock price went from $40 to $140, largely because of Weibo, and Goldman’s report says that at current stock prices, Weibo’s implied valuation is $6 billion. Goldman writes that is “(in our view) rich”, perhaps the understatement of the year. Goldman values Weibo at $3.5 billion, which is reasonable.

In other words: this stock has had a great run, but the party’s over folks.

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Photo: Google Finance

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