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.

From other sites
Comments (3)
  • mstar991
    , contributor
    Comments (76) | 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 (227) | 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
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs