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Sohu.com Inc. (SOHU)

- NASDAQ
  • 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.
    | Comment!
  • 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.
    | Comment!
  • 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.
    | 21 Comments
  • 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
    | 5 Comments
  • 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.
    | 9 Comments
  • 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.
    | 1 Comment
  • 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.
    | Comment!
  • 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.
    | 1 Comment
  • Oct. 15, 2014, 2:28 PM
    • On a day when the Nasdaq is down 1.8% and the S&P 2.2%, many Chinese Internet stocks are rallying. China's lowest CPI print in five years - it helped the Shanghai exchange rise 0.7% overnight - could be playing a role.
    • Baidu (BIDU +1.1%), Sohu (SOHU +2.8%), Youku (YOKU +4.9%), Vipshop (VIPS +3%), and Weibo (WB +2.9%) are among the standouts. Others: CMGE +6.1%. MOBI +4.1%. NTES +3.5%. DANG +2.3%. SFUN +1.7%. CCIH +1.7%. BITA +1.5%.
    • ETFs: KWEB, CQQQ, QQQC
    | 7 Comments
  • 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
    | 21 Comments
  • Sep. 10, 2014, 5:35 PM
    • Top gainers, as of 5:15 p.m.: JDSU +13.7%. RMTI +7.3%. GOGO +4.2%. EXXI +2.3%. SOL +2.1%.
    • Top losers, as of 5:15 p.m.: EOPN -27.4%. SOHU -6.5%. FIVE -5.0%. HP -5.0%. RH -3.7%.
    | Comment!
  • Jul. 25, 2014, 5:32 PM
    • Goldman has raised its 2014-2016 Baidu (BIDU +10.9%) EPS estimates by 17%-23% following its sizable Q2 EPS beat and above-consensus Q3 guidance, and hiked its target by $35 to $260. BofA/Merrill, Deutsche, and Piper have also raised their Baidu PTs.
    • Goldman was pleased with several datapoints provided in the Q2 report and CC (transcript). Among them: 1) Baidu topped 500M mobile search monthly active users (MAUs) in June. 2) Maps MAUs have passed 200M. 3) Baidu's app distribution platforms (led by 91 Wireless) averaged 130M downloads/day in Q2. 4) The Nuomi daily deals unit (acquired from Renren) has seen its user base double since Q4.
    • BofA/Merrill observes Baidu's aggressive spending growth is now being fueled more by hiring than by marketing spend, something it expects will translate into future leverage. Marketing spend fell to 11.5% of revenue from 14.1% in Q1, while R&D grew to 14.6% from 13.6%.
    • Baidu made fresh highs today, and provided a lift to rivals Qihoo (QIHU +3.7%) and Sohu (SOHU +2.2%) along the way.
    | 5 Comments
  • Apr. 28, 2014, 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%.
    | 11 Comments
  • Apr. 28, 2014, 9:15 AM
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  • Apr. 28, 2014, 8:58 AM
    • SOHU expects Q2 revenue of $397M-$411M and EPS of $1.25-$1.35. The former's $404M midpoint is unfavorable to a $409.1M consensus, and the latter is well below a -$0.62 consensus. Subsidiary Changyou (CYOU) expects Q2 revenue of $182M-$188M and EPS of -$0.26 to -$0.38, below a consensus of $191.4M and $0.08. The companies also offered light guidance three months ago.
    • Pressuring Sohu's Q1 EPS: Opex rose 17% Q/Q and 122% Y/Y to $295M, thanks largely to Changyou's marketing/promotional spend and new employee incentive plans. Like peers, Changyou is spending aggressively to hold its ground in a fiercely competitive Chinese gaming market.
    • Also taking a toll: Sohu's gross margin fell 200 bps Q/Q and 400 bps Y/Y to 62%, due in part to higher amortization costs for licensed video content.
    • Brand ad sales rose 38% Y/Y in Q1 to $111M, after growing 50% in Q4. Thanks in part to the acquisition of Tencent's Soso search unit, search revenue rose 78% to $64M; mobile search traffic rose 24% Q/Q, and PC traffic "edged up."
    • Online game revenue (via Changyou) fell 2% Y/Y to $163M, after growing 9% in Q4. Changyou's gaming average monthly accounts totaled 28M, +12% Q/Q but -26% Y/Y due to declines for TLBB, Wartune, and DDTank. Changyou's platform channel accounts (video site, browser, etc.) rose 60% Q/Q and 182% Y/Y to 239M.
    • Q1 results: Sohu, Changyou. PRs: Sohu, Changyou.
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  • Apr. 24, 2014, 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
    | 2 Comments
SOHU vs. ETF Alternatives
Company Description
Sohu.com Incis a Chinese online media, search, gaming, community and mobile service group. The Company along with its subsidiaries is engaged in online advertising , search and others business, online games, mobile and others business.