Seeking Alpha

SouFun -13.7% on price cut, downgrade; E-House, Leju also off

  • SouFun (SFUN) has announced a 40% price cut on subscription fees for secondary listing customers (a high-margin business that's 25% of revenue), Deutsche reports. The firm sees this as a "major downside surprise for the market," and is downgrading SouFun to Hold.
  • Deutsche also thinks SouFun is "facing deteriorating economics around its SouFun card business." It attributes this to aggressive competition in tier-1 cities, and a "land-grabbing strategy in lower-tier cities along with deepening geographical penetration."
  • E-House (EJ -5.8%) and Leju (LEJU -6.6%) are again going in the same direction as SouFun. Shares of all 3 companies fell on Tuesday following downbeat land sale data.
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Comments (3)
  • mstar991
    , contributor
    Comments (65) | Send Message
     
    soon its time to buy again. EJ is my pick
    12 Jun 2014, 10:52 AM Reply Like
  • Lylo
    , contributor
    Comments (2) | Send Message
     
    Blue light special on aisle 5!!! This kind of selling is way overdone.
    12 Jun 2014, 12:09 PM Reply Like
  • depueman
    , contributor
    Comments (119) | Send Message
     
    20% in one day. And it was already off 45% in 3 months. This is nuts.
    12 Jun 2014, 03:32 PM Reply Like
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