Fri, Mar. 20, 12:20 PM
- #3 Chinese search engine Sogou is planning an IPO that will feature a $3B+ valuation, Bloomberg reports. Sources add Sogou, which is controlled by Sohu (SOHU +3.7%), could see an offering in 2H15.
- Sogou has been easily outgrowing Sohu's portal and gaming ops: Its revenue rose 70% Y/Y in Q4 to $119M. It had an estimated 6.9% Q4 Chinese search share, trailing Baidu's (NASDAQ:BIDU) 74.4% and Qihoo's (NYSE:QIHU) 17.3%.
- Tencent (OTCPK:TCEHY) bought a 40.9% stake in Sogou in 2013 for $516M, and has integrated Sogou's services with its wildly popular WeChat mobile messaging platform (recently hit 500M MAUs). Aside from search, Sogou's services include a Web directory, games, and popular Chinese-language typing software (Sogou Pinyin).
Thu, Mar. 12, 3:13 PM
- Major tech gainers are about even with major decliners on a day the Nasdaq is up 0.8% (thanks to a broader market rally) in spite of Intel's Q1 warning.
- Notable gainers include 3D printer maker Voxeljet (VJET +5.9%), cloud ERP/HR software provider NetSuite (N +3.7%), flash sales site Zulily (ZU +7.5%), stock photo marketplace Shutterstock (SSTK +6.5%), cloud telecom expense software vendor Tangoe (TNGO +5.6%), It services provider Virtusa (VRTU +4.7%), online video ad platform TubeMogul (TUBE +4%), and online ad campaign software provider Marin (MRIN +4.2%).
- Notable decliners include several Chinese firms. Specifically, search/portal/game provider Sohu (SOHU -5.3%), entertainment/IM/gaming platform YY (YY -4.2%), mobile game publisher Sky-mobi (MOBI -5.8%), and sports lottery site 500.com (WBAI -5.6%).
- Other big decliners include printer maker Lexmark (LXK -2.6%), chip packaging/testing provider ChipMOS (IMOS -4.7%), and smart grid/wind turbine component maker AMSC (AMSC -6.3%).
- Zulily is just a day removed from making fresh lows the wake of last month's Q4 miss and soft guidance. BMO provided an upbeat note on TubeMogul yesterday.
- YY has now more than given back the gains it saw last week following its Q4 beat. ChipMOS posts Q4 results after the close, and is two days removed from reporting its February sales rose 10.5% Y/Y, a slower pace than in recent months (thanks in part to the timing of the Chinese New Year). 500.com recently crashed due to license suspensions, but had bounced from its lows. Lexmark drop comes shortly after HP refreshed its printer lineup.
- Previously covered: Box, Rosetta Stone, CyberArk, Integrated Silicon, Universal Display, Spherix, Synchronoss, Ingram Micro
Mon, Feb. 9, 10:34 AM
- Though SOHU beat Q4 estimates, it's guiding for Q1 revenue of $425M-$440M and EPS of -$0.95 to -$1.05, below a consensus of $445.1M and -$0.72.
- Subsidiary Chanyou (NASDAQ:CYOU), which posted a revenue beat and an EPS miss, is guiding for revenue of $195M-$200M and EPS of $0.64-$0.68; the former is below a $201M consensus, and the latter above a $0.24 consensus.
- Changyou has also announced the appointment of Sohu exec Jasmine Zhou as its permanent CFO. Zhou takes over from Rucia Ren, who had been serving as interim CFO.
- Sohu's online game revenue (stems from Changyou) rose 7% Y/Y in Q4 to $184M. Sogou search revenue rose 70% to $119M (share gains), and brand ad revenue 20% to $148M. Changyou's average monthly active accounts and quarterly active paying accounts respectively rose 81% and 59% to 13.9M and 2.7M.
- Sohu's gross margin was 59%, up from Q3's 58% but down from 64% a year ago. Operating expenses rose 16% Y/Y to $288M (compares with 24% revenue growth), with Changyou's opex rising 14% to $149.4M.
- Sohu: Q4 results, PR. Changyou: Q4 results, PR.
Mon, Feb. 9, 6:00 AM
Sun, Feb. 8, 5:30 PM
Tue, Jan. 20, 1:10 PM
- Beaten-down SOHU is among the standouts on a fairly quiet day for tech. The Chinese search/gaming/video provider has seen 348K shares trade thus far, surpassing a 3-month daily average of 307K. Online gaming subsidiary Changyou (NASDAQ:CYOU) is also having a good day.
- Sohu sports a 2015E EV/sales ratio of just 0.6x. Given history, Sohu and Changyou's Q4 results will likely arrive in late January or early February.
Dec. 15, 2014, 10:31 AM
- JPMorgan is making a contrarian call on SOHU, upgrading the Chinese search/portal/online gaming provider to Overweight. Subsidiary Changyou (NASDAQ:CYOU) is also rallying.
- Sohu was down 34% YTD going into today. Shares have gradually trended lower since Sohu/Changyou provided mixed Q3 results and light Q4 guidance in early November, and announced Changyou CEO Tao Wang has resigned.
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. 26, 2014, 12:58 PM
- Facebook (FB +2.1%) and Twitter (TWTR +2.6%) are rallying on a sleepy pre-Thanksgiving trading day. The companies have respectively seen 21.9M and 16.1M shares traded thus far vs. 3-month averages of 38.3M and 28.1M.
- Several other Internet stocks (both U.S. and Chinese) are also moving higher. Z +2.3%. TRLA +3%. BITA +5.1%. EJ +6.7%. SFUN +2.6%. VIPS +3.3%. SOHU +2.9%.
- Facebook is at its highest levels since selling off in late October due to its Q4 revenue and 2015 spending guidance.
Nov. 12, 2014, 8:04 AM
- Xiaomi (now China's biggest smartphone vendor and #3 worldwide) and Baidu (NASDAQ:BIDU) are each investing $300M in Baidu's iQiyi video site, China Business Daily reports.
- Meanwhile, Xiaomi has announced it's taking a stake in major iQiyi rival Youku (NYSE:YOKU) by acquiring shares on the open market. Xiaomi will also license content from Youku, and the companies will "jointly invest in the production and distribution of online video content and movies."
- The news comes a week after Xiaomi announced it's investing $1B to expand its Web video content library. The company claims 85M active users for its MIUI Android UI (pre-installed on its phones). Baidu/iQyi recently announced it would have distribution rights to 1K+ U.S. movies next year.
- Baidu, Youku, SOHU, and Tencent have been battling fiercely in a Chinese Web video market that features no dominant YouTube-like player for user-generated/short-form content, nor any dominant Netflix-like player for TV shows and movies. The market has seen huge mobile video growth: Mobile made up over 60% of Youku's Q2 video views.
- YOKU +3.6% premarket.
Nov. 4, 2014, 1:04 PM
- China's DoNews reports (citing an internal e-mail) Sohu (SOHU -1%) has reached a deal to acquire Renren's (RENN) 56.com video site, and plans to merge it with Sohu Video. Details will reportedly be provided next week.
- A July report stating Renren is selling 56.com Chinese video site Mango TV didn't pan out. However, Renren (having a rough time over the last two years) has unloaded its Nuomi daily deals site to Baidu, and has generally been looking to cut costs.
- Acquiring 56.com would give Sohu more scale as it squares off against Baidu, Youku, and Tencent in a very competitive Chinese online/mobile video market. Shares are off slightly after rallying yesterday (along with those of gaming unit Changyou) post-earnings.
Nov. 3, 2014, 10:11 AM
- Down sharply premarket after providing light Q4 guidance and announcing Changoyu (CYOU +6.7%) CEO Tao Wang has resigned, Sohu (SOHU +3.4%) and Changyou are now rallying.
- In addition to any enthusiasm about the CEO, low expectations could be helping Sohu and Changyou out: The companies respectively went into trading down 33% and 25% YTD.
Nov. 3, 2014, 9:15 AM
- Along with its Q3 report, Changyou (NASDAQ:CYOU) announces CEO Tao Wang has resigned for "personal reasons." SOHU CFO Carol Yu and Changoyu president Dewen Chen will serve as co-CEOs.
- The news comes as both Changyou and parent Sohu post mixed Q3 results (EPS beats and revenue misses) and offer light Q4 sales guidance. Sohu expects Q4 revenue of $442M-$462M, mostly below a $461.1M consensus. Changyou expects Q4 revenue of $188M-$198M, below a $199.2M consensus.
- Changyou's Q3 revenue (42% of Sohu's revenue) fell 1% Y/Y due to a 7% drop in online game revenue to $150.3M; Changyou faces off against Tencent, Perfect World, Shanda, and a slew of other firms in a very competitive Chinese online gaming market.
- Average monthly active accounts for Changyou's games amounted to 29M, +21% Q/Q and -6% Y/Y. Average monthly accounts for platform channels totaled 275M, +9% Q/Q and +178% Y/Y.
- Sohu's Sogou search unit continued to perform well: Sales rose 17% Q/Q and 86% Y/Y to $106M. Meanwhile, Sohu's brand ad sales grew 12% Q/Q and 19% Y/Y to $106M.
- Sohu's gross margin was 58%, flat Q/Q and down from 66% a year ago. Opex was $275M, +3% Q/Q and +47% Y/Y.
- Sohu: Q3 results, PR. Changyou: Q3 results, PR.
Nov. 3, 2014, 5:50 AM
Nov. 2, 2014, 5:30 PM
SOHU vs. ETF Alternatives
Sohu.com Incis a Chinese online media, search, gaming, community and mobile service groupproviding comprehensive online products and services on PCs and mobile devices in the People's Republic of China.
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