Seeking Alpha

Youku drops on pre-earnings downgrade

  • T.H. Capital has cut Youku (YOKU -4.1%) to Hold ahead of Tuesday's Q2 report.
  • Shares now -31% YTD. Concerns about intensifying competition from Baidu, and to a lesser extent Sohu and Tencent, have weighed on shares. However, the Chinese online video giant is still expected by the Street to post 35% 2014 sales growth, and 37% 2015 growth.
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Comments (1)
  • kruk
    , contributor
    Comments (291) | Send Message
     
    Yoku is a $40 to $50 dollar stock on a strategic basis alone. After the monetization they will have many billions in cash and NO debt and are nearly profitable today. With half a billion users and clear monetization pathways, why this company is not valued equal to say Twitter is beyond..

     

    I would love to see Marissa Mayer of Yahoo turn around and buy a third of this company with part of the Alibaba cash, that would be ironic and she is so tougher and hundreds of millions personally wealthier than the previous Yahoo CEOs...lets see them try to push her around...if you think I'm kidding, just ask the San Fran PD.

     

    This stock is down simply because there is a political fight in Beijing over which sons of which politicians are going to get which pieces of the video business. Given iPhones will be sold on china mobile and Yoku has a great deal with China Mobile, that is all you need to know. Once Beijing allows them to start showing the previous TV shows again, this stock will rocked...ie this stock will rocket now that the chinese insiders have engineered their own buy in at 20 after it is clear the company is going to be bought at 40-50.
    18 Aug 2014, 04:05 PM Reply Like
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