Is it because the earnings report or because of Facebook IPO?
Bloomberg
Chinese Internet Stocks Jump on WSJ Report of Facebook IPOJanuary 27, 2012, 5:28 PM EST By Zachary Tracer
(Updates with closing share prices in second paragraph.)
Jan. 27 (Bloomberg) -- Social media company Renren Inc. led a surge in Chinese Internet companies after a report that Facebook Inc. may file for an initial public offering next week.
Renren jumped 26 percent to $5.25 at the close in New York after the Wall Street Journal report, the most in more than eight months. Sina Corp., which operates a service similar to Twitter, rose 12 percent to $69.96.
Facebook, the largest social-networking site, may be valued at $75 billion to $100 billion in the IPO, the Wall Street Journal reported, citing unidentified people. A Facebook IPO may increase investors’ willingness to buy stock in Chinese companies that offer similar services, said Echo He, an analyst at Maxim Group LLC in New York.
“It just confirms that a lot of investors are interested in this type of company,” she said. “There are some investors getting in. People don’t want to be late.”
--Editor: Marie-France Han
To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net
To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net
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