- Citing online gaming weakness, Jefferies has downgraded Qihoo (QIHU -6.8%) to Hold, and cut its target to $67 (still well above current levels).
- The Chinese gaming market has been intensely competitive for many years - Tencent remains its 800-lb. gorilla - and has also been contending over the last couple of years with a shift towards mobile gaming. Nonetheless, Qihoo's Internet value-added service revenue (mostly gaming-related) rose 157.7% Y/Y in Q3 to $172.8M, thanks in large part to mobile growth.
- Though it hasn't yet set an earnings date, Qihoo's Q4 report is expected to arrive in the coming weeks.