Dec. 8, 2014, 2:51 PM
- Though Shanghai was up 2.8% overnight following positive trade surplus data, Chinese Internet stocks are off sharply in U.S. trading amid a broader equity selloff. The Nasdaq is down 0.9%.
- Major decliners: WUBA -11.9%. QIHU -6.9%. MOBI -6.8%. YY -5.9%. WBAI -7.7%. CCIH -9.3%. VNET -8.9%. JMEI -8.9%. ATHM -8.5%. DANG -6.5%. SOHU -4.6%. SFUN -4.3%. EJ -4.4%. CMCM -6.9%. CMGE -8.3%.
- Valuations for the group are generally much lower today than they were in spring.
Dec. 1, 2014, 10:38 AM
- Chinese Internet and telecom names are among the biggest tech decliners as the Nasdaq registers a 0.9% drop. A soft November PMI print isn't helping.
- Giants Alibaba (BABA -4.3%) and Baidu (BIDU -2.8%) are among the casualties. As is Qunar (QUNR -5.8%), which reports after the bell.
- Other Internet decliners: BITA -12%. QIHU -4.4%. CTRP -4.3%. SFUN -7.2%. LEJU -7.5%. RENN -6.3%. SINA -3.8%. WB -3%. YY -3.9%. VIPS -3.8%. SOHU -3.5%. MOBI -4.3%. CMGE -8.6%.
- Telecom decliners: CHL -3.6%. CHU -3.9%. CHA -4%.
- ETFs: KWEB, CQQQ, QQQC
Nov. 25, 2014, 12:45 PM
Nov. 25, 2014, 11:25 AM
- After barely budging AH yesterday in response to its Q3 beat and solid Q4 sales guidance, Qihoo (NYSE:QIHU) is now up sharply.
- SA author WestEnd511 is pleased with the 65% Y/Y growth in Qihoo's Mobile Safe MAUs, declaring it demonstrates "QIHU's dominance in China's mobile security space, despite rising competition from CMCM and other sub-scale solution providers." The author does admit declining gross margins and soaring marketing spend remain concerns - the latter is chalked up to app pre-install deals with mobile OEMs.
- ONeil Trader notes Qihoo's net margin, while down 890 bps Y/Y, rose 200 bps Q/Q, as top-line growth outweighed margin pressure and aggressive spending. "I believe that Qihoo is a bargain at the current price, given the significant growth opportunities and the fact that it is trading at just 17x its [estimated] 2015 EPS."
- Update (2:00PM): Credit Suisse has upgraded Qihoo to Outperform.
Nov. 25, 2014, 9:15 AM
Nov. 24, 2014, 5:40 PM
- Qihoo (NYSE:QIHU) expects Q4 revenue of $410M-$415M, above a $405.1M consensus.
- While top-line performance remains strong, gross margin remains under pressure: It fell to 77.3% in Q3 from 79.1% in Q2 and 86.2% a year ago. Last quarter, Qihoo suggested search monetization costs and product mix changes were pressuring margins.
- Also: Opex rose 110% Y/Y (above rev. growth of 100%) to $200.1M, due to a 226% increase in sales/marketing spend to $91.5M.
- Total monthly active users of Qihoo's PC products amounted to 495M in September, down 1M Q/Q and up 30M Y/Y. Users of Qihoo's Mobile Safe app rose by 32M Q/Q and 265M Y/Y to 673M. Daily unique visitors to Qihoo's browser start page averaged 129M vs. 128M in Q2 and 126M a year ago.
- The company says its 360 Mobile Assistant Android app store (competes against Baidu and Tencent) continues to lead the Chinese market, and that it has received "very encouraging responses" to display and search ad platforms launched at the end of Q3.
- QIHU nearly unchanged AH. Q3 results, PR.
Nov. 24, 2014, 5:01 PM| 2 Comments
Nov. 23, 2014, 5:35 PM
Nov. 19, 2014, 12:37 PM
- Google (GOOG +0.1%) plans to finally launch the Google Play app store in China, The Information reports. By doing so, Google hopes to grow its mobile clout in a market believed to account for roughly half of Android's 1B+ global users, but in which Google apps/services are often non-existent on Android devices.
- Google famously shut down Google.cn in 2010 rather than continue censoring its search results, but still maintains R&D and ad sales offices in China. In addition, many Chinese developers have published apps on Play's international app stores to reel in non-Chinese users. Apple has had a Chinese App Store in place for years.
- When Play arrives in China, it will face competition from Qihoo (QIHU -2.9%) and Baidu/91 Wireless' well-established Android app stores, as well as from Tencent. Qihoo shares have slumped following The Information's report.
Oct. 17, 2014, 6:39 PM
- Qihoo (NYSE:QIHU) is shooting for a 10% Chinese mobile search share by the end of 2014, and a 30% share within 2 years, says president Qi Xiangdong.
- While Qihoo has been estimated to have a 30%+ PC search share, its mobile search share is much smaller. Baidu is believed to have over half the market, and Alibaba-owned UCWeb has also grown into a major player.
- In August, Qihoo said mobile had grown to account for a "low-teen to mid-teen" % of its search traffic from just 5% at the beginning of the year, and was aiming for 25% by year's end.
Oct. 2, 2014, 9:38 AM
- Qihoo's (QIHU +4.6%) buyback is good for repurchasing 2.5% of shares at current levels. It arrives with shares having fallen 49% from an all-time high of $124.42.
- The company notes it had $787M in cash at the end of Q2 (to go with $600M in long-term debt), and has since raised $1B through a convertible offering.
Sep. 23, 2014, 5:35 PM
Sep. 19, 2014, 12:44 PM
- Whether it's a case of selling on the news, freeing up capital to buy Alibaba shares, or a mixture of the two, a slew of Chinese Internet stocks are selling off as Alibaba (though off its highs) registers a 30%+ post-IPO gain.
- Baidu (BIDU -2.2%) and JD.com (JD -4.5%), both of which rallied yesterday, are among the decliners. Others: QIHU -2.7%. SFUN -3%. EJ -2.7%. YY -2.1%. WB -2.3%. WUBA -6.3%. MOBI -6.4%. CMGE -6.5%.
Sep. 15, 2014, 1:21 PM
- Maybe looking to raise cash with which to buy Alibaba (Pending:BABA) this week, investors are dumping a wide swath of other Chinese internet names.
- Qihoo (QIHU -2.6%), Sohu.com (SOHU -5.3%), Baidu (BIDU -3.8%), Sina (SINA -4.9%), Renren (RENN -4%), Weibo (WB -11.3%), YY (YY -7.3%).
- Previously: Alibaba to boost IPO size
Aug. 26, 2014, 10:54 AM
- Citing soft mobile search traffic and competition, Credit Suisse has downgraded Qihoo (QIHU -2.8%) to Neutral a day after the company sold off due to the margin concerns triggered by its Q2 report.
- On the CC (transcript), CEO Hongyi Zhou said is "making [a] strategic shift in focus on resources to mobile search," and is aiming for its mobile search share to match its PC share over the long-term.
- CFO Alex Xu stated mobile now accounts for a "low-teen to mid-teen" percentage of Qihoo's search traffic, up from ~5% at the beginning of 2014, and that the company is aiming to raise this figure to 25% by year's end.
Aug. 25, 2014, 1:11 PM
- Though Qihoo (NYSE:QIHU) beat Q2 estimates and offered above-consensus Q3 sales guidance, its gross margin fell to 79.1% from 79.5% in Q1 and 88.3% a year ago. In addition, opex rose 19% Q/Q and 114% Y/Y to $208.3M on the back of a 254% Y/Y increase in sales/marketing spend.
- Online ad revenue +22.3% Q/Q and +89% Y/Y to $171.3M thanks to search and mobile ad growth. Internet value-added service revenue +17.2% Q/Q and +140% Y/Y thanks to PC/mobile gaming growth.
- Total monthly active users of Qihoo's PC products totaled 496M in June, up from 497M in March and 461M a year ago. Smartphone users of Qihoo's 360 Mobile Safe app rose to 641M from 538M in March and 338M a year ago.
- Daily unique visitors for Qihoo's 360 browser home page grew to 128M in Q2 from 122M in Q1 and 114M a year ago. Average daily clicks for the page grew totaled 749M, up from 590M a year ago but down from 772M in Q1.
- Citi estimates PC search revenue (boosted by share gains) rose 52% Q/Q to $62M (20% of total revenue), and that mobile revenue rose 16% Q/Q to $68M, with 67% coming from games. At the same time, it expects heavy spend to result in op. margin falling to 25% in 2014 from 34% in 2013.
- Q2 results, PR
QIHU vs. ETF Alternatives
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