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Sohu.com Inc. (SOHU)

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  • Jul. 19, 2013, 2:25 PM
    Sohu (SOHU +0.9%) responds to comments from a Qihoo (QIHU +1.6%) exec about M&A talks regarding Sohu's Sogou search unit by stating it "has been, and continues to be, in preliminary discussions with several potential strategic investors and partners." Sohu adds its Sogou options include both the sale of a minority stake, and "a more comprehensive strategic combination." Qihoo has issued a PR in which it says "no agreement has been reached with respect to a significant transaction," but provides little color beyond that.
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  • Jul. 19, 2013, 9:38 AM
    Qihu (QIHU -1.1%) says it's in talks to buy Sohu's (SOHU +0.4%) Sogou search unit, but cautions it's "not in the pricing stage yet" and is still weighing integration issues. Analysts estimate the business is worth $1.2B-$1.4B. Sogou, rumored to be drawing interest from a few different companies, was recently estimated to have an 8.8% share of the Chinese search market in June; Qihoo was given a 15.3% share. If integration challenges can be handled well, a Qihoo/Sogou merger would yield a company with more resources, user data, and advertising scale to take on Baidu (BIDU -0.3%, 69.4% share). Sohu has forecast Sogou revenue of $48M-$50M for Q2, +41%-44% Y/Y.
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  • Jul. 5, 2013, 11:22 AM
    Google (GOOG +0.6%) had just 2.1% of the Chinese search market in June, down from 4.7% last October, per research firm CNZZ. Though Google's Chinese share has been falling for some time thanks to its decision to shut down Google.cn and redirect visitors to its Hong Kong site rather than censor results, Qihoo's (QIHU +3.4%) decision to make its own search engine the default engine for its browser, and thereby swap out Google, has sped up the trend. Qihoo is now estimated to have a 15.3% share (was 9.6% in Oct.), and Sohu's (SOHU +1.3%) Sogou 8.8% (7.8% prior). Baidu's (BIDU +1.1%) share is believed to have fallen to 69.4% from 73%. (more on Qihoo/Baidu)
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  • Jun. 28, 2013, 9:40 AM
    A roundup of tech analyst ratings changes: 1) Sina (SINA -0.2%) has been upgraded to Hold by Maxim. 2) First Solar (FSLR +1%) has been upgraded to to Buy by Argus. 3) Vodafone (VOD +0.5%) has been upgraded to Buy by Deutsche. 4) American Superconductor (AMSC +10.3%) has been started at Buy by Ascendiant Capital. 5) F5 (FFIV +0.7%) has been upgraded to Outperform by Raymond James. 6) Move (MOVE +1%) has been started at Buy by B. Riley. 7) Sohu (SOHU -1.1%) has been upgraded to Neutral by HSBC. 8) Palo Alto Networks (PANW -2.2%) has been started at Perform by Oppenheimer. 9) Veeco (VECO -1.7%) has been started at Neutral by Wedbush.
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  • Jun. 27, 2013, 9:59 AM
    A roundup of tech ratings changes: 1) BNP Paribas has started Baidu (BIDU +1.6%) at Buy. 2) Longbow has upgraded Seagate (STX +4.1%) and Western Digital (WDC +2.9%) to Buy. 3) Pac Crest has started Synchronoss (SNCR +2.9%) at Outperform. 4) Lazard has upgraded Trimble (TRMB +2.5%) to Buy. 5) BMO and RBC have downgraded Rogers (RCI -1.9%) to Market Perform/Sector Perform, and BMO has also downgraded Telus (TU -2.4%) to Market Perform. However, Stifel has upgraded Telus to Buy. (yesterday). 6) HSBC has upgraded Sohu (SOHU +3.8%) to Neutral. 7) China Mobile (CHL +1.7%) has been upgraded to Neutral by BofA/Merrill. 8) Atmel (ATML +1.4%) has been upgraded to Buy by Lazard. 9) Flir Systems (FLIR +2.1%) has been upgraded to Overweight by Stephens.
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  • Jun. 24, 2013, 1:23 PM
    Chinese Internet and solar stocks fall hard after growing banking sector liquidity worries contribute to a 5.3% drop for the Shanghai Composite. Notable decliners: YY -13%. DANG -9%. GA -8.9%. PWRD -7.2%. YOKU -6.6%. SOHU -5.8%. NQ -5.6%. CSIQ -8.4%. TSL -8.3%. LDK -7.5%. JKS -6.9%. JASO -6.9%. DQ -7.1%. SOL -6.7%. Meanwhile, Bloomberg observes many Chinese solar firms, including Trina, JinkoSolar, and Canadian Solar, are moving production overseas to counter EU import tariffs.
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  • Jun. 7, 2013, 4:14 PM
    Alibaba is the latest Chinese Internet giant to be named a buyer of Sohu's (SOHU +4.1%) Sogou search unit by the rumor mill. The Alibaba rumor follows reports in May claiming Qihoo and then Baidu had reached deals to buy Sogou for lofty sums (each report proved unfounded). Sohu closed up strongly today, but so did many other Chinese Internet names.
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  • May. 29, 2013, 2:37 PM
    Mobile now makes up 15% of Web traffic, up from 10% a year ago, notes Mary Meeker in her latest Internet Trends Report. Also mentioned: China (BIDU, SINA, SOHU, YOKU) has 564M Web users (42% penetration), with 75% accessing the Web from their phones (71% use PCs); India's Web penetration is only at 11% (137M users); mobile now makes up 12% of U.S. media viewing time (it's 22% in China) and 3% of ad spend, up from 10% and 1% before; YouTube's (GOOG) per-minute video uploads are up 5x since '09; 60% of Facebook (FB) users log in daily, and the site receives 350M daily photo uploads; global smartphone penetration is still only at 21%. (Meeker in 2012)
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  • May. 20, 2013, 10:15 AM
    Chinese Internet stocks jump in response to Qihoo's Q1 beat and very strong Q2 guidance, highlighted by ramping search ad sales and soaring online game revenue. YY +6.5%. RENN +6.8%. NTES +5.5%. BIDU +2.4%. PWRD +3.2%. SOHU +3%. SINA +2.3%.
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  • May. 17, 2013, 11:14 AM
    Take this one with a grain of salt: an "industry source" claims Baidu (BIDU +1.6%) has reached a deal to buy Sohu's (SOHU +2.5%) Sogou search unit for $2B-$2.5B in cash and shares of Baidu's iQiyi online video unit. Though Sohu is rallying, the entire company still only has a market cap of $2.4B, indicating investors are as skeptical of this report as they were of Qihoo deal reports. Acquiring Sogou would pose integration challenges for Baidu, and (given Baidu's dominant Chinese search share) could also draw a regulatory response. (previous)
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  • May. 15, 2013, 9:42 AM
    Sohu (SOHU -1.5%) slumps after CEO Charles Zhang throws cold water on M&A speculation. The rumor mill had been rife with reports Sohu is looking to sell its Sogou search engine, perhaps to finance a bid for Chinese P2P streaming platform PPTV.
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  • May. 13, 2013, 10:13 AM
    Sohu (SOHU +2.5%) pops on Chinese media reports it's set to sell its Sogou search engine to Qihoo (QIHU -2.5%) for $1.4B. However, Sohu CEO Wang Xiaochuan has denied deal rumors; past reports have claimed Baidu and Tencent are also in the running. With Sohu still only having a market cap of $2.4B, it looks like many investors are skeptical (Sogou makes up less than 12% of Sohu's revenue). Qihoo (and for that matter, Baidu) would have to do a lot of heavy lifting to integrate Sogou with its own search engine.
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  • May. 8, 2013, 1:10 PM
    A recent Chinese government proposal to allow local investors to buy stocks traded elsewhere could give a lift to "companies familiar to them," argues Stifel. The firm mentions Baidu (BIDU +3.3%), Qihoo (QIHU +2.1%), Youku (YOKU +1.2%), and Tencent (TCEHY.PK - trades in HK) as beneficiaries. All 3 U.S.-traded names are rallying, as are YY (YY +8.9%), Sohu (SOHU +5.1%), Perfect World (PWRD +1.6%), and Changyou (CYOU +3.1%). Youku fell yesterday after Baidu confirmed it's buying video site PPS, and will integrate it with its iQiyi site. Baidu claims PPS/iQiyi will create China's largest Web video platform in terms of mobile users and viewing time.
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  • May. 6, 2013, 2:30 PM
    Chinese Internet stocks are surging after equities rallied in Shanghai and Hong Kong in spite of a major drop in China's services PMI. In addition to Qihoo (previous), winners include Renren (RENN +12.2%), YY (YY +13.3%), Baidu (BIDU +3.8%), Sina (SINA +2.8%), Sohu (SOHU +3.4%), Changyou (CYOU +4.3%), and Perfect World (PWRD +5%). YY is now up 20% since posting a strong Q1 report on Thursday afternoon; revenue rose 130.5% Y/Y to RMB315M ($50.7M), and EPS of $0.23 beat consensus by $0.06. Revenue is expected to hit RMB330M-340M in Q2.
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  • Apr. 29, 2013, 10:43 AM
    Sohu (SOHU +0.3%) is up slightly and subsidiary Changyou (CYOU -4.6%) is slumping after each posted a Q1 beat (I, II). Sohu is guiding for Q2 revenue of $333M-$342M and EPS of $0.50-$0.55 vs. a consensus of $318.8M and $0.61. Though a 41%-44% Y/Y increase in brand ad revenue, and a 58%-65% jump in Sogou search revenue, is expected to boost sales, Sohu's aggressive spending  - opex +40% Y/Y in Q1 - clearly isn't letting up. Sohu's online game revenue is expected to hit $165M-$170M in Q2, up from Q2 2012's $137M. Changyou expects Q2 revenue of $170M-$185M and EPS of $1.33-$1.38 vs. a consensus of $179.4M and $1.43. (PRs: I, II)
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  • Apr. 29, 2013, 6:16 AM
    Sohu.com (SOHU): Q1 EPS of $0.62 beats by $0.09. Revenue of $308M (+36% Y/Y) beats by $11.03M. (PR)
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Company Description
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.