Citi Cuts Target on Sina to $35, Sees Pressure from Weibo Investments, Tencent

Citigroup issued a scathing note on Sina

Wednesday morning following the company's better-than-expected Q4 results and inline Q1 guidance. Shares of Sina are up more than 8.5 percent amid the results. Citigroup's Ravi Sarathy reduced his price target on shares of Sina from $45 to $35 and also added the stock to the conviction list as a strategic short. Sarathy believes margin pressure related to increased investment in Weibo will soon begin to affect the company. He pointed to disruptions from mobile usage as Tencent becomes more popular. Citigroup maintains a Sell rating on Sina.