Pacific Growth Equities analyst Jason Brueschke maintained his
overweight rating on Sohu.com (ticker: SOHU) after the company reported
earnings results yesterday. Here is his reaction to Sohu's Q2 results:
....While we are disappointed in the near-term out look
for the advertising business, we believe the impact from WoW is likely
to prove short lived, and the situation surrounding mobile handsets is
likely to prove largely an isolated, one-time event. Although the
shares are still up more than 30% since our upgrade, we believe the
reasons to like Sohu are its impressive traction in Search achieved in
the past 9 months, the fact that the bottom to the wireless business is
now behind the Company, and its continued very strong market share in
branded advertising-all point to a bright future for the Company, in
our estimation. While we expect some weakness in the shares near-term
due to the guidance, we urge investors to view this as a buying
opportunity. Maintain Over Weight.
