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?
Qihoo Pursuing Vertical Integration: Is Coolpad The Answer?
- 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 Q3 2014 Review: Still A Rising Star In Mobile Internet
- 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 • Nov. 25, 2014
- 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.
Fri, Jan. 2, 4:00 PM
- Though Baidu has sold off and Alibaba is near breakeven, a slew of Chinese Internet and mobile names have delivered strong gains on a day the Nasdaq is down fractionally.
- Standouts include online retailers JD.com (JD +3.8%) and Vipshop (VIPS +5%), auto sites Bitauto (BITA +6%) and Autohome (ATHM +3.9%), beaten-down Qihoo (QIHU +4.2%) and NQ Mobile (NQ +8.4%), and newly-public social network/mobile chat platform Momo (MOMO +6.3%).
- Chinese online real estate plays SouFun, E-House, and Leju have delivered 10%+ gains after the city of Beijing hiked a credit ceiling for home purchase loans, and Perfect World has soared after receiving a going-private offer. Renren also had a very good day.
Dec. 16, 2014, 4:53 PM
- Qihoo (NYSE:QIHU) will invest $409.1M to obtain a 45% stake in a mobile phone JV with fast-growing Chinese Android OEM Coolpad. The JV will make phones under Coolpad's well-known Dazen brand, and primarily sell them online.
- As part of the deal, Qihoo will become "the default provider of key mobile services," for Coolpad's entire phone lineup. Qihoo's search engine, app store, and mobile security software are among the covered products.
- Coolpad, which faces off against the likes of Lenovo, Xiaomi, Huawei, and Samsung in China's hotly-competitive Android market, forecast in April its phone shipments would rise 50% this year to 60M units, with a third of the sales coming from online orders. Xiaomi has also seen considerable success selling online.
- The deal could help Qihoo narrow the gap between its mobile and PC search shares; the company is aiming to roughly triple its Chinese mobile search share to 30% within two years. It also stands to bolster the position of Qihoo's app store, which faces stiff competition from Baidu and Tencent.
- Shares sold off to new 52-week lows today. Nomura defended Qihoo amid the rout.
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
QIHU vs. ETF Alternatives
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