Qihoo 360 Tech (QIHU)

[wallst-winest]

There is some seasonality in their Q3 numbers but behind that there is reason to be concerned. It looks like revenues are slowing from their massive clip, but that may just be the law of large numbers. Without getting too far into the weeds, search revenues are contracting much faster than gaming revenues. Moving away from Q3, there is a recent report from a third party data provider that claims QIHU is losing marketshare in its search, down from 24% to roughly 21% currently. QIHU predicted that their 2013 year end search marketshare would be 25% and 30% for 2014. So the jury is still out. Reason for concern, but I still believe that China is a massively growing pie so even if Qihu remains at 25% that is very impressive and should equate to some healthy revenues.