Sina, Sohu or Netease?

I received an email from my dear reader today. Per his/her permission, I posted the questions here and I’d like to share my answers with you.

I am a small volume amateur stock investor. You seem to be very

knowledgeable on issues regarding SMS and the internet. I own a few shares of SINA. Please tell me what your opinion is on which portal is better.

For SMS: SINA, SOHU, or Netease?

For Games: SINA, SOHU, or Netease?

For Portal Content: SINA, SOHU, or Netease?

For online shopping: SINA, SOHU, or Netease?

Who do you think will be the next “Yahoo”?

DISCLAIMER: THE OPPINION EXPRESSED HERE IS, AND SHOULD ONLY BE TREATED AS, PERSONAL OPPINION. THERE IS NO POSSIBILITY FOR ME TO HOLD ANY RESPONSIBILITY FOR THE RESULT OF THE STOCK BUYING AND SELLING CAUSED BY THIS ARTICLE.

Sina is the best

As a common netizen here, I will, with most of my friends will choose Sina as the best portal, the best SMS provider and the best news source in China. There is no doubt if there is only one web site here in China that is valuable, it is Sina. It is strong in most all areas – because it is so strong as a news portal, this brings so much traffic to the site and make it possible for other sub sites (health, finance, SMS, game) to succeed.

SMS

For SMS, the biggest movement of Sina is an add-in for Microsoft Outlook XP to allow users to drag and drop emails, notes, and calendar items to the plug in and send them via SMS. This has not been popular yet, but it is unique enough to differentiate Sina from other SMS providers. Sohu and Netease don’t have such cooperation with Microsoft in China.

Also, as I know, Sina also offers $5 package for 80 SMS messages to overseas users. Check out David’s comments on this. It is very cool.

Besides these innovative applications, Sina’s traditional SMS business runs very profitable. It offers tune and screen saver downloading, SMS package that allow users to pay less and send more, news headlines via SMS and even mobile pets that requires you to send SMS to sina to feed them, taking care of them. All these services generate huge amount of traffic of SMS messages. Sina will share the SMS revenue with the mobile operator.

For netease and sohu, personally, I don’t use their service. So does most of my friends. However, do not take my perspective as general ideas. I do know someone who loves Sohu better than Sina, but it is relatively rare.

Portal content

Definitely Sina. In the break time in office, people use to browse Sina for the latest news. Most of my friends’ first reaction for breaking news is to go and check Sina, just as CNN or MSNBC for Americans.

However, something really happened two days before that made Sina look really bad – it falsely reported that “Bill Gates was murdered in LA” as the headline news. I don’t know whether CNN or Bill Gates will sue Sina for this. If it is the case, this will impact the stock of SINA – according to Raymond.

Anyway, Sina offers better news and quicker news than any other media here in China. In one word, I love Sina.

Online game and online shopping

For online game, none of the three portal you gave enjoys high reputation. The legend from Korea occupy the market. I am not a online game player and don’t know too much about it.

For online shopping, I don’t go to Sina, or netease or sohu. For online shopping only limits to book and CD. I will buy my stuff at www.joyo.com, www.cnforyou.com. These are smaller website and didn’t IPO. But they are the best sites for books and CD. Till now, I never heard of anybody who has bought via Sina, Sohu or Netease. But it is common for me to buy via the two sites I mentioned – one every two months.

Who will be the next Yahoo!

You have got my answer: sina – if there were any Yahoo! again in China.

Background

Please note I am a young man in the IT industry. People in other industry with different background or age may have completely different preference.

Thanks for the good topic for me, G.


P.S. My site received 2496 hits on the day of March 31, which is the highest in the history of this site. Meanwhile, the month of March closes with 40K hits, while I forecasted to be 32K 10 days before. Thanks for all the readers who supported me.

12 thoughts on “Sina, Sohu or Netease?

  1. Thanks for your perspective on SINA.

    SINA has also signed a deal with BBC to provide English lessons to chinese users via SMS. Thought that would be very profitable, in addition to all the revenue streams you have already mentioned.

    Now I am just being puzzled why SINA’s stock price is lagging behind SOHU all the time.

  2. Here is another piece of news for you guys…Shocking story from Microsoft fomer employee. It is absolutely true…on today’s Seattle Times. If you like this, you might also update on the latest news column. Yeah, I agree that recenly the world is going to be a little bit insane.:-)

    Microsoft manager died from drinking antifreeze

    SEATTLE ?Daniel Feussner, a former Microsoft manager who died suddenly two months ago while facing federal charges for allegedly stealing $9 million in company software, had ingested ethylene glycol, the main ingredient in automobile antifreeze, the King County medical examiner has determined.

    But the Medical Examiner’s Office said it cannot say whether the 32-year-old, German-born computer expert committed suicide or accidentally ingested the poison.

    Feussner died Feb. 7 after being rushed to a Bellevue hospital. He had been free on bail while awaiting trial on 15 counts of wire, mail and computer fraud in U.S. District Court. Prosecutors alleged Feussner financed a lavish lifestyle by obtaining software from the company and selling it. If convicted, he could have faced up to 20 years in prison.

  3. I own 265 shares of SINA bought in one of the latest upswings; a novice investor/trader. Made over $1000 on three buy/sell transactions since July. The stock is now overvalued viz a viz valuation, but, given its prognosis for future value, i like the risk. Right now i am waiting for what i hope is another upswing. 1.2 billion people in China, over 80 million users of Sina products with millions to provide additional support over the next few yrs. Competitors will come to this incredible market…but for now i will stick with SINA. Kind regards, Paul

  4. I own 265 shares of SINA bought in one of the latest upswings; a novice investor/trader. Made over $1000 on three buy/sell transactions since July. The stock is now overvalued viz a viz valuation, but, given its prognosis for future value, i like the risk. Right now i am waiting for what i hope is another upswing. 1.2 billion people in China, over 80 million users of Sina products with millions to provide additional support over the next few yrs. Competitors will come to this incredible market…but for now i will stick with SINA. Kind regards, Paul

    A great article with interesting first hand anecdotal testimonial. Thanks.

  5. Mr Wangjianshuo,

    I am glad to read this article on this morning, I am respect for you analysis, meanwhile I have one queation to ask what do you think the next step of Netease business stratgey. I mean any large corperation should have a certian business plan, say, what is gotta do when we after finish the pervious stage,and how can we use the objects to build up our final goals. Any business strategy at least more than more than Five years, even 10 nyears. Presently, netease has already comeback to the NASDAQU and it becomes the third protal of China’s IT industryand last year reveune is 39 million US dollars. What is they want for next. be a MUltinational fir? or move to the oversea marke?

    I have to say no matter Sina, Sohu or Netease, all of these Chinese IT business lack of a Business stratey, we still have far to go, compare with many sucessful global IT brand Amezon.com, Yahoo.com, our chinese IT business nelgece their own specility, they resemble the much more same. let me move to their service, last month i tried to contact Netease’s marketing and selling department,i Email them but the postmaster replied me on the day after i sent the email, said the email address was failed to find. what will the customer think about it a IT big brother who has no any correct email address. I was frustrated.

    However, as a oversea Chinese we believe one day there will be no more gap between our business with the foreignor’s.could you relp me with your answer, because I am doing a project for Chinese new entrepreneurs. I’ll appreciate all the help you do for me and take care.

    your Frankly

    Karen Yang

    4th May 2004

  6. Hi Jian,

    has your opinion changed now, two years after your original comment?

    I am doing a research on chinese portals.

    thanks

    ivona

  7. hi jian, i have been submitting my site all around china, i do not speak chinese, and would like to know can someone tell me how to add url sina, sohu,netease,and 163.com thank you very much lou

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