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Actionable news in SINA: Sina Corporation,

Sina Shouldn’t Be Worth Less Than Its Weibo Parts

Shares of the Chinese social media firm have surged 23% since its quarterly results last week. Weibo, which provides a Twitter-like service, saw its revenue rise 36% last quarter from a year ago. And unlike its unprofitable U.S. counterpart, Weibo’s profit has leapfrogged sixfold from last year. The results are particularly encouraging since Weibo has managed to attract smaller advertisers after ending a cooperation agreement with e-commerce giant Alibaba earlier this year.

But after nearly quadrupling since February lows, Weibo’s shares are no longer cheap, trading at 43 times next year’s adjusted earnings—much higher than many Chinese internet names. Alibaba, for example, trades...