Last week’s acquisition of Chinese online retailer Joyo by Amazon.comappears to have touched off a bit of speculative fever in Chinese Internet stocks.
SINAsoared 16% Wednesday on rumors that Yahoocould make a play for the company. The rumors have surfaced before, but Amazon’s recent acquisition appears to have traders listening more closely.
With Amazon and eBay— with its 2003 acquisition of EachNet — looking more closely at China, it stands to reason that Yahoo might not be far behind. With a market cap of $1.15 billion, though, SINA would not come cheap.
SINA and other Chinese Internet stocks have been hit recently by sanctions from China Mobile, which has been cracking down on wireless messaging violations. NetEaseand SOHUrode SINA’s coattails to 10% gains each on Wednesday.
The broader market surged as oil prices tumbled and traders shook off weak home sales and a gain in durable orders that was driven mainly by aircraft orders.
The Nasdaq surged 23 to 1860, the S&P 500 climbed 8 to 1104, and the Dow rose 83 to 10,181. Volume rose to 1.19 billion shares on the NYSE, and 1.32 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 20-9 on the Nasdaq. Upside volume was 75% on the NYSE, and 84% on the Nasdaq. New highs-new lows were 105-16 on the NYSE, and 43-49 on the Nasdaq.
After the close, Opswarebeat estimates, and ADC Telecommissed. Apolloreaffirmed guidance, and Cirruswarned.
During the day, ADEsoared 21% on its results, and Semtechrose 6% after beating estimates.
Applied Signalclimbed on its results, while OmniVisiondeclined on a warning.
Overstockand Motorolarose on upgrades.
Tesscoplunged 16% on a downgrade.