Qihoo Q4 Earnings Preview: Diversification Into Hardware Will Be Key In 2015
Neil Flynn • 32 Comments
Neil Flynn • 32 Comments
Qihoo: Near-Term Pain For Long-Term Gains
Neil Flynn • 15 Comments
Neil Flynn • 15 Comments
Aug. 31, 2015, 5:35 PM
Aug. 28, 2015, 8:16 AM
- The investor group offering to buy out Qihoo 360 (NYSE:QIHU) is considering cutting its $9B bid after China's stock-market rout lowered valuations, WSJ reports.
- The Internet-services provider's shares closed at $51.28 on Thursday, one-third below the nonbinding $77-a-share offer made in June by its chairman, Zhou Hongyi, and a clutch of investors.
- The proposed buyout would be the largest take-private deal for a U.S.-listed Chinese company.
- QIHU -4.4% premarket
Aug. 26, 2015, 12:18 PM
- Chinese tech stocks are under pressure again, and Qihoo (QIHU -9.5%) is among the biggest casualties. 1.7M shares have been traded thus far vs. a 3-month daily average of 2.9M.
- Separately, Qihoo and Coolpad's Qiku JV has unveiled three Android phones: The high-end Q Terra, the low-end Q Luna, and an unnamed mid-range China-only model. The first two phones will begin shipping in China in September, before gradually reaching other emerging markets such as India, Brazil, and Russia.
- The high-end and mid-range phones will have 6" displays and dual 13MP rear cameras, and the low-end phone a 5.5" display and single 13MP rear camera. The high-end model sports a 2K resolution, and the others 1080p. Qiku is emphasizing the phones' security features, such as a dedicated VPN for payments and a kill switch for lost/stolen phones. Competition will be provided Samsung, Xiaomi, Huawei, Lenovo, and many others.
- Qihoo's Q2 report arrives on Sep. 1. Shares are now 38% below the $77/share buyout offer price provided by an investor group led by co-founder/CEO Hongyi Zhou. Doubts have been aired about whether the deal will hold.
Aug. 24, 2015, 9:22 AM
- The Shanghai and Shenzhen exchanges nosedived again overnight as fears of an economic slowdown triggered panic selling, and U.S. futures are off sharply premarket. As one would expect, many U.S.-traded Chinese names are seeing big losses.
- Baidu (NASDAQ:BIDU) -9.8% premarket. SINA -9.7%. Weibo (NASDAQ:WB) -10.5%. Ctrip (NASDAQ:CTRP) -9.4%. Qunar (NASDAQ:QUNR) -15%. SouFun (NYSE:SFUN) -15.4%. NQ Mobile -10.1%. Qihoo (NYSE:QIHU) -14.7%. YY -9.3%. Bitauto (NYSE:BITA) -8.8%. JD.com (NASDAQ:JD) -9.6%. Vipshop (NYSE:VIPS) -15.9%.
- Alibaba (previous) is down 9.8% to $61.48, making new post-IPO lows along the way. Tencent (OTCPK:TCEHY) fell a relatively modest 5% overnight in Hong Kong.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Aug. 24, 2015, 9:19 AM
- Gainers: GAS +29%.
- Losers: VTL -79%. ACI -31%. BZUN -25%. WBAI -23%. JMEI -20%. BTU -17%. MDR -17%. CSIQ -17%. VIPS -16%. FIT -16%. SFUN -15%. LC -15%. PLUG -15%. EXXI -15%. QIHU -14%. MACK -14%. ACHN -14%. KNDI -13%. CYBR -13%. OHGI -13%. Z -13%. TCK -13%. JKS -13%. AVEO -12%. OAS -12%. WLL -12%. MCUR -12%.
Aug. 20, 2015, 11:01 AM
- The Shanghai and Shenzhen exchanges respectively fell 3.4% and 3% overnight as macro fears persist, and the Nasdaq is down 1.5% amid a general flight to safety. The Guggenheim China Tech ETF (CQQQ -3.2%) is once more near a 52-week low of $30.09 (set on July 8).
- Major Web/mobile decliners include Qunar (QUNR -9.1%), Vipshop (VIPS -4.9%), JD.com (JD -4.6%), Qihoo (QIHU -4.5%), ChinaCache (CCIH -6.6%), SouFun (SFUN -5.9%), Sina (SINA -5.7%), Weibo (WB -4.3%), Baozun (BZUN -9.3%), and Wowo (WOWO -3.2%).
- Jumei (down 22.3%), Youku (down 8%), and 58.com (down 4.9%) are seeing steep losses in spite of delivering Q2 beats after the close yesterday. Baozun reported yesterday morning, and Sina and Weibo Tuesday afternoon.
- ETFs: KWEB, QQQC, EMQQ
Jul. 27, 2015, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Jul. 9, 2015, 9:18 AM
Jul. 8, 2015, 9:12 AM
Jul. 7, 2015, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Jun. 17, 2015, 9:17 AM
Jun. 17, 2015, 8:08 AM
- In partnership with investment firms Golden Brick Capital, China Renaissance, and Sequoia Capital, Qihoo (NYSE:QIHU) co-founder, chairman, and CEO Hongyi Zhou has offered to take the company private for a price equal to $77 per ADS - a 16.6% premium to Tuesday's close.
- As is the norm, Qihoo's board plans to form a committee to review the offer. Zhou's proposal appears to be the largest in a recent wave of going-private offers for U.S.-traded Chinese companies.
- Qihoo has jumped to $73.60 premarket.
Jun. 5, 2015, 12:24 PM
- In what's now a familiar story, U.S.-traded Chinese Internet stocks are posting big gains following an overnight rally in the Middle Kingdom: The Shanghai Composite rose 1.5%, topping 5,000 for the first time since 2008. The Nasdaq is nearly flat.
- Big gainers include Qihoo (QIHU +7.5%), Bitauto (BITA +5.8%), JD.com (JD +4%), YY (YY +4.9%), 58.com (WUBA +3.9%), Sina (SINA +7.8%), Weibo (WB +4.8%), 500.com (WBAI +9.9%), Jumei (JMEI +4.3%), Sky-mobi (MOBI +4.3%), iDreamSky (DSKY +5.3%), E-House (EJ +3.6%), and Leju (LEJU +4%). Qunar is also up strongly after downsizing and pricing a stock offering.
- Sina and Weibo are now respectively up 39% and 22% since Sina CEO Charles Chao announced on Monday he's investing $456M in Sina.
- ETFs: KWEB, CQQQ, QQQC
May 26, 2015, 10:01 AM
- Following a new $45M investment, Qihoo (QIHU -0.5%) owns 49.5% of its mobile phone JV with Chinese Android OEM Coolpad, up from a prior 45%.
- The JV, which (like Xiaomi) plans to primarily sell phones online, was first announced last December. Earlier this month, Qihoo/Coolpad announced the JV's phones would be sold under the Qiku label, and that three models would initially be offered. Aggressive pricing is promised.
May 20, 2015, 12:01 PM
- Up moderately in AH trading yesterday after beating Q1 estimates and providing in-line Q2 guidance, Qihoo (NYSE:QIHU) has tumbled towards $55 today.
- No downgrades have yet arrived. The Q1 slowdown seen in Qihoo's Internet value-added service revenue (up 7.1% Y/Y, after rising 112% in Q4) thanks to PC gaming weakness and online lottery suspensions (offsetting mobile gaming growth) could have some investors on edge.
- Shares now trade for less than 12x a pre-earnings 2016 EPS consensus of $4.75.
May 19, 2015, 7:17 PM
- Qihoo (NYSE:QIHU) is guiding for Q2 revenue of $435M-$445M (+37%-40% Y/Y), in-line with a $437.2M consensus and favorable at the midpoint.
- Lifting Q1 EPS: Operating expenses (non-GAAP) rose 35% Y/Y in Q1 to $209.7M, a marked slowdown from Q4's 84% and Q3's 110%, and below revenue growth of 45%. GAAP sales/marketing spend totaled $90.6M, G&A $27.8M, and R&D $112M. Also helping: Gross margin was 79.3%, down from 81% a year ago but up from Q4's 76.1%.
- Online ad revenue rose 75.1% Y/Y to $245.3M; Internet value-added services (IVAS - gaming-dominated) rose 7.1% to $133.7M. Rising search and mobile ad sales fueled the ad growth; IVAS revenue was hurt by "soft business trend in Web games" and the March suspension (following government mandates) of online lottery sales.
- User metrics: Total users of Qihoo products/services rose by 8M Q/Q and 24M Y/Y to 503M. Smartphone users of Qihoo's 360 Mobile Safe app rose by 34M Q/Q and 240M Y/Y to 778M. Monthly active users of Qihoo PC browsers rose by 15M Q/Q and 35M Y/Y to 376M. Average daily unique visitors for Qihoo's 360 browser startup page rose by 1M Q/Q and 11M Y/Y to 133M. Qihoo asserts its 360 Mobile Assistant app store "continued to maintain its leadership position in Android app distribution in China."
- QIHU +1.2% AH to $59.48.
- Q1 results, PR
Qihoo 360 Technology Co., Ltd. engages in the provision of Internet and mobile security products. Its core Internet and mobile security products include 360 Safe Guard, 360 Anti-Virus, and 360 Mobile Safe. It also develops platform products that include 360 Browsers, 360 Personal Start-Up page,... More
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