From other sites
at Benzinga.com (Wed, 10:31AM)
at Benzinga.com (Dec 18, 2014)
China Stock Roundup: Baidu Acquires Uber Stake, China Telecom, Unicom Expand Hybrid LTE Trials - Analyst Blogat Zacks.com (Dec 18, 2014)
at Benzinga.com (Dec 18, 2014)
at Zacks.com (Dec 17, 2014)
at Zacks.com (Dec 9, 2014)
at Zacks.com (Nov 27, 2014)
at Zacks.com (Nov 26, 2014)
at CNBC.com (Nov 25, 2014)
at Zacks.com (Nov 25, 2014)
Qihoo Going VoIP: Negative Implication For Chinese Telcos
- QIHU has introduced a VoIP app that allows only one user have the app to make the phone call.
- Chinese telcos will see ongoing voice/text revenue erosion from entries by Chinese internet companies.
- Long QIHU and short CHL.
Did Qihoo 360 JV Partner Coolpad Ship Phones Bundled With Malware?
- Recent reports from a US-based security firm claim to have found serious malware in Coolpad Phones.
- Qihoo has built a reputation on security; did it trust the wrong partner?
- What does that mean to the recently announced JV?
- Qihoo announced a joint venture with Chinese original equipment manufacturer Coolpad.
- All phones produced by the JV will have Qihoo's software pre-installed.
- This partnership should help Qihoo expand into mobile search, an area that has been a point of emphasis for the company.
- QIHU and Coolpad entered into a JV in which QIHU will invest $409m for a 45% stake in a Coolpad online subsidiary.
- The JV will focus on designing, manufacturing and selling affordable/quality handsets and embedding QIHU's mobile internet services.
- Expect QIHU's ecosystem to take off. Negtaive implication for Baidu. Neutral on BABA and Tencent. Potential negative for Xiaomi.
- Qihoo paying $410MM for 45% stake, focus on software and marketing.
- After earlier attempts testing the hardware waters, the company is diving in.
- Given challenges facing the company, is this a good idea, now?
- Techweb reported that QIHU is looking to acquire a Shenzhen-based smartphone maker. Shenzhen-based Coolpad saw shares halted pending news release.
- The acquisition of Coolpad immediately gives QIHU an asset with solid distribution, brand and competitive hardware.
- QIHU seems to remain focused on building its own ecosystem, more so than BABA, BIDU and 700HK.
- Qihoo 360 trades at $75 a share, with a market capitalization of just $9 billion.
- WhatsApp was purchased for over $20 billion for its 600 million users; Qihoo's security user base is much larger.
- Baidu has a market capitalization over $85 billion, but Qihoo has consistently stolen market share and now has half Baidu's search share.
- Qihoo is now launching monetization tools for search, which should have a profound effect on the business.
- Given Qihoo's large user base in two different segments, combined with future monetization efforts, $75 is too cheap.
- Qihoo has initiatives to guide higher on revenues and margins.
- Search revenue growth will accelerate next year.
- Extremely cheap valuation with approximately 18% of its market cap in cash and equivalents.
- Qihoo reported Q3 earnings and revenue ahead of views.
- Margins remain under pressure on higher spending and changing product mix.
- Management guided Q4 revenue above analyst consensus.
- Reiterating my bullish view on Qihoo, the stock is a bargain at a forward 2015 P/E of 17.
- Qihoo beat in Q3 on both revenue and EPS.
- Search may have decelerated sharply in the quarter, but IVAS more than offset the weakness.
- Operating metrics holding up. Search could see a recovery in Q4.
- The share price fell 38.3% between August and October as investors reallocated capital to the Alibaba IPO. This external reason for the fall presents an investment opportunity.
- Qihoo’s management focuses on building its user base through free services, which can be monetized later. The potential for further monetization is much greater than its rivals.
- Search traffic market share is 30%, whilst market share in terms of revenues is just 2.9%. Search monetization has been very conservative, but the acquisition of MediaV should improve this.
- Despite losing, Qihoo’s legal battle with Tencent seems to be over. This should reassure investors as the public spat has been a distraction for five years.
- Qihoo’s management sees great potential in the enterprise security industry, and will leverage their market leading status in personal security applications.
Qihoo Q3 2014 Preview: Mobile Competition Heating Up; Corporate Security The Long-Term DriverWestEnd511 • Tue, Nov. 25
- QIHU to report on Monday after market close.
- Mobile competition heating up on both the app store and search side.
- Corporate security is the long-term driver.
- Qihoo stock closed Thursday at $67.60 a share, well below its 52 week high.
- I wrote a bullish article last month saying that the stock was a very good buy. The stock price was around $67 then as well.
- I still think the stock is very cheap and that buying now can lead to high returns in the future.
Qihoo Q3 Earnings Preview: Why Company Looks To Prove Analysts Wrong Once Again
- Analysts' recent price cuts still offer investors with more than 50% in upside potential.
- Qihoo has met or exceeded analyst estimates for the last eight quarters and looks poised to keep that streak going.
- Why I'm a buyer before earnings are released next week.
- Qihoo was recently slammed in a Barron's article without much analysis of the argument.
- Management has addressed worries over margin pressures.
- A $200M share buyback points to management's confidence in their strategy.
- Since reporting Q2 results, shares of Qihoo 360 have lost almost 35% of their value.
- Were earnings really bad enough to justify this share price implosion?
- The future looks bright and investors should take advantage of the buying opportunity.
- Qihoo 360 experienced a sharp drop after reporting second quarter earnings.
- The company announced a $200 million share buyback program which should help protect the stock from further downside.
- A look at a P/S ratio chart reveals where the potential bottom is.
Mon, Apr. 28, 10:17 AM
- Sohu (SOHU -4.8%) missed Q1 estimates and provided light Q2 guidance. Meanwhile, as part of a recent crackdown, the Chinese government has pulled The Big Bang Theory and other popular U.S. shows from sites such as Sohu.com, Youku.com (YOKU -4.4%), Baidu's (BIDU -5%) iQiyi, and Tencent Video (TCEHY -2.8%). Time observes The Big Bang Theory has produced 1.3B video views since launching on Sohu TV in '09.
- The news is overshadowing a $1.22B investment in Youku by Alibaba (ABABA) and an affiliated P-E firm, and a WSJ report stating Alibaba is forming a mobile search JV with leading mobile browser firm UCWeb (once targeted by Baidu).
- The deals are the latest in a long line of investments and partnerships struck by Alibaba, Tencent, and Baidu, as each firm tries to build a Web/mobile empire covering over a dozen valuable markets.
- Is Qihoo (QIHU -0.8%) next in line to make a deal? With a $21.6B market cap, the security app/browser/search provider and Baidu rival is the biggest Chinese Internet company to remain independent of the big-3. Qihoo was reported in January to be talking with Alibaba.
- Other decliners: NQ -6.5%. VIPS -5.2%. WB -4.2%. WBAI -3%. LONG -4.5%. QUNR -2.4%.
Thu, Apr. 24, 4:50 PM
- Baidu (BIDU) expects Q2 revenue of RMB11.82B-RMB-12.11B ($1.901B-$1.948B), above a consensus of RMB11.55B.
- Revenue growth accelerated to 59.1% in Q1 from 50.4% in Q4. Online ad customers fell 1.1% Q/Q to 446K after falling 2.8% in Q4, but revenue per ad customer remained steady Q/Q and rose 44.1% Y/Y to RMB20.9K ($3,362).
- As promised, Baidu continues to invest aggressively: SG&A spend soared 136.9% Y/Y to $323.2M, thanks in large to mobile promotional efforts. R&D spend rose 57.5% to $205.4M.
- Traffic acquisition costs rose to 12.4% of revenue from 12.3% in Q4 and 10.2% a year ago. Content costs (fueled by online video licensing) rose to 4.1% of revenue from 3.8% in Q4 and 1.6% a year ago.
- Up in sympathy: SINA +1.6%. SOHU +1%. QIHU +2.6%. YY +1.1%. WB +1.5%. YOKU +1.7%.
- Q1 results, PR
Tue, Apr. 15, 4:55 PM| 8 Comments
Thu, Apr. 10, 4:01 PM
- Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
- Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
- Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
- Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
- Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
- 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
Tue, Apr. 8, 4:00 PM
- Smart bargain hunting or catching a falling knife? After being bludgeoned almost ceaselessly over the last couple of weeks, many high-beta tech stocks are closing the day with sizable gains.
- The rebound comes on a day when hedge fund Coatue Management announced plans to return over $2B to investors following a 9% March decline caused by tech stock losses. It also comes as several tech giants, including Apple, Microsoft, H-P, and IBM, finish the day near breakeven, or with modest losses.
- Leading U.S. Internet gainers: LNKD +6.2%. P +6%. ZU +5%. SALE +7.2%. SSTK +6%. AOL +4.6%.
- Chinese Internet gainers: EJ +9.1%. WBAI +8.9%. QIHU +7.9%. ATHM +8.1%. YY +6.8%. SFUN +8.7%. GOMO +9.8%. Ctrip and Qunar were among the sector's biggest gainers following M&A rumors.
- Others: FSLR +7%. NMBL +6.2%. NPTN +5.9%. PANW +5.5%. EGHT +5.4%. RFMD +4.9%. QIWI +4.9%. CRUS +4.3%. RALY +5.5%.
Fri, Apr. 4, 5:58 PM
- Cheetah Mobile, a Chinese provider of security, browser, and utility apps, has filed for a $500M IPO. No symbol has been given yet. Morgan Stanley, JPMorgan, Credit Suisse, and Macquarie are underwriting.
- Cheetah is a subsidiary of Hong Kong-listed Kingsoft (KSFTF), which currently owns a 54.1% stake. Its product line includes file-cleaning/privacy app Clean Master (83.9M MAUs as of December), battery-saving app Battery Doctor (52.5M MAUs), Web anti-virus app Duba (141M MAUs), photo collage app Photo Grid (20.9M MAUs), and the Cheetah Browser (50.6M MAUs).
- Its products square off against Qihoo's (QIHU) widely-used security apps and browser. Cheetah had 329.5M total MAUs at the end of 2013, and Qihoo 475M.
- Like Qihoo, Cheetah depends heavily on ad sales (81.7% of 2013 revenue) to monetize its free apps, and also generates revenue by publishing games. Revenue soared 160% in 2013 to $123.9M; net income totaled $10.2M.
- TechNode observes Cheetah CEO Sheng Fu was once the right-hand man of outspoken Qihoo CEO Hongyi Zhou. Qihoo has sued Fu for allegedly using confidential info and breaking a non-compete agreement.
Wed, Mar. 26, 4:04 PM
- Aided by King's poor debut and general momentum stock weakness, U.S. and Chinese Internet stocks have fallen hard for the second time this week.
- In addition to King rival Zynga and newly-minted VR headset maker Facebook, Twitter (TWTR -7.1%) is among the leading U.S. decliners. Exactly 3 months after reaching a peak of $74.73, shares have fallen below their post-IPO opening price of $45.10. They remain well above their $26 IPO price.
- Other U.S. decliners: P -5.2%. Z -6.2%. TRLA -7%. GSVC -4.8%. SVVC -4.1%.
- Many Chinese Internet stocks have also been hit hard. Sungy Mobile (GOMO -23.2%), which posted a Q4 beat and in-line guidance yesterday afternoon, is the biggest decliner. Others: QIHU -8%. WUBA -9.5%. MOBI -10.6%. QUNR -7.8%. NQ -7%. YOD -7.6%. WBAI -7.5%. SOHU -7%. ATHM -6.5%. SFUN -6.3%.
- Internet/social media ETFs: FDN, PNQI, SOCL
Thu, Mar. 6, 5:37 PM
- Qihoo (QIHU) expects Q1 revenue of $226M-$228M, well above a $203M consensus.
- Online ad revenue soared 113% Y/Y to $142.4M after growing 107% in Q3. Search ads, mobile ads, and better monetization of Qihoo's 360 browser home page were responsible. Citing 3rd-party data, Qihoo says its search share rose to 23% during Q4.
- Internet value-added service revenue rose 124% to $78.9M after growing 163% in Q3. PC and mobile games fueled the increase.
- Total users of Qihoo's products/services rose 10M Q/Q and 19M Y/Y to 475M. Smartphone users of Qihoo's 360 Mobile Safe app rose 14% Q/Q and 126% Y/Y to 467M.
- One possible area of concern: Daily unique browser home page visitors averaged 119M, up 28M Y/Y but down 7M Q/Q. Home page daily clicks averaged 681M, up 231M Y/Y but flat Q/Q.
- Opex soared 60% Y/Y to $109.6M, as Qihoo continues investing heavily in both sales and R&D.
- A lot of good news was priced in.
- Q4 results, PR
Thu, Mar. 6, 5:06 PM| 2 Comments
Thu, Mar. 6, 12:10 AM
Wed, Mar. 5, 5:35 PM
Wed, Mar. 5, 10:06 AM
- Qihoo's (QIHU +1.4%) mobile apps, including the flagship 360 Mobile Safe (had 408M smartphone users at the end of Q3), are have returned to the iOS App Store more than a year after getting pulled due to abuses that included the manipulating app store rankings and encouraging jailbreaking.
- IDC estimates the iPhone only had a 7% Chinese smartphone share in Q4, and that the iPad had a 28% Chinese tablet share in Q2. But their user bases represent a wealthier demographic that (on average) is easier to monetize than Chinese Android users.
- Qihoo's Q4 report arrives tomorrow.
Thu, Feb. 27, 11:06 AM
- Citing concerns about a soft 2014 margin outlook (the result of aggressive investments), Morgan Stanley has cut Baidu (BIDU +2.3%) to Equal-Weight in spite of its Q4 beat and strong Q1 guidance. Shares have given back a large chunk of yesterday's AH gains.
- Stifel, however, has upgraded shares to Buy and lifted its PT to $238. It expects Baidu's mobile queries will grow to account for over half its total queries in 2014, and notes mobile search ad prices (CPCs) are now at 60% of PC levels (up from 55% in Q3).
- The firm forecasts 53% and 49% revenue growth in 2014 and 2015, respectively. Adjusted EBITDA is only expected to rise 9% in 2014, but growth is expected to surge to 51% in 2015.
- Maxim notes mobile's revenue share doubled from Q1 to Q4, and Goldman observes Baidu's app stores, locked in fierce competition with Qihoo (QIHU +2.2%), have a 41% share of Chinese app distribution, per research firm Analysys.
- CEO Robin Li suggested on the CC (transcript) Baidu, which made a string of big acquisitions in 2013, is open to more M&A in 2014. He also claimed over 60% of mobile ad customers now have a mobile-optimized landing page.
Tue, Feb. 18, 4:03 PM
- On a good day for many tech momentum plays, solar and Chinese Internet stocks led the way.
- Solar names could be benefiting from Chinese government remarks suggesting Beijing remains open to trade talks to end its ongoing solar import dispute with the U.S. The comments come after the ITC added Chinese solar panels made with Taiwanese cells to its list of Chinese panels covered by import duties.
- Also: SunEdison (SUNE +6.6%) has filed for an IPO for its solar project business, a move that could entice other companies with major solar project ops to do the same.
- Solar gainers: FSLR +6.9%. SCTY +8%. JASO +12.6%. DQ +9.2%. CSUN +8.1%. YGE +5.5%. JKS +5.3%.
- Chinese Web gainers: CTRP +11.5%. CCIH +16.8%. RENN +11%. YOKU +6.1%. QIHU +6.9%. WUBA +10.6%. WBAI +7.9%. GOMO +9.1%. SOHU +5.6%.
- Solar ETFs: KWT, TAN
Thu, Jan. 23, 9:59 AM
- SEC administrative law judge Cameron Elliot has barred the Chinese units of the Big-4 accounting firms - KPMG, Deloitte, PwC, and Ernst & Young - from auditing U.S.-listed companies for six months.
- Elliot declares the accounting firms "willfully" chose to withhold audit work papers from U.S. regulators for Chinese companies being investigated for accounted fraud. The firms have been worried about violating Chinese privacy laws by turning over the papers, and have argued the dispute needs to be resolved politically.
- Though the firms plan to appeal and say they can continue serving Chinese clients for now, shares of Chinese Web and solar names aren't handling the news well. Soft Chinese PMI data could be worsening matters.
- Chinese Web decliners: BIDU -2.5%. SOHU -3.2%. DANG -8.9%. SFUN -8.5%. PWRD -8.5%. QUNR -7.1%. LITB -6.5%. YY -6.1%. WUBA -6%. BITA -5.4%. EJ -5.9%. SINA -4.6%. LITB -6.5%. CTRP -5.4%. NQ -7.1%.
- Chinese solar decliners: TSL -8.7%. JASO -6.9%. SOL -6.3%. JKS -5.6%. CSIQ -5.4%. DQ -4.6%. YGE -5.6%. CSUN -6.2%. HSOL -7.8%.
- Qihoo (QIHU -4.6%) has joined the selloff in spite of a BrightWire report stating Alibaba (ABABA) has reached a deal to acquire a stake in the company. Marbridge Consulting reported two weeks ago Qihoo and Alibaba were in talks about a possible investment.
Thu, Jan. 23, 9:12 AM| Comment!
QIHU vs. ETF Alternatives
Other News & PR