Sohu Com Inc. (SOHU)

[eastunder]

Sohu finviz chart:

[eastunder]

Sohu.com Announces Changyou.com Began Open Beta Testing of "Tao Yuan" on May 24, 2012

Sohu.com Inc. (NASDAQ: SOHU), China's leading online media, search, gaming, community and mobile service group, today announced that its online game subsidiary, Changyou.com Limited ("Changyou") (NASDAQ: CYOU) began open beta testing of Tao Yuan, an inhouse-developed 3D turn-based martial-arts massively multi-player online role-playing game ("MMORPG") on May 24, 2012.


Adapted from legendary stories of heroes in the Three Kingdoms period in China, Tao Yuan is a turn-based game developed using the Unreal3 game engine. In the game, players strategically position fighting characters on a 3x5 grid and take turns to attack and defend. Unlike typical turn-based games, turns are determined by an "active time battle" system that adds a time-keeping meter for each character during combats. When the meter is full, players are given an opportunity to attack or defend their characters, but must respond swiftly or else their turn expires. This combination of a 3x5 grid and an "active time battle" system makes gameplay more challenging and exciting as it tests players' responsiveness, skills and ability to strategize within a short-time frame. In addition, players can choose from a total of 17 occupations and can interchange between occupations freely in the game. In full screen mode, the game features beautifully rendered 3D characters and landscapes.

Mr. Dewen Chen, Changyou's president and chief operations officer, commented, "We continue to grow our portfolio of MMO games with the launch of our new inhouse-developed game, Tao Yuan. The game adds new variations to gameplay that is not typically found in traditional turn-based games. We expect the game to attract new audiences and draw in more players of turn-based games that will help to grow and diversify our user base."


About Changyou

Changyou.com Limited (NASDAQ: CYOU) is a leading developer and operator of online games in China with a diverse portfolio of online games that includes Tian Long Ba Bu, one of the most popular massively multi-player online ("MMO") games in China, and DDTank, one of the top-ranking Web-based games in China. Changyou also owns and operates the 17173.com Website, a leading game information portal in China. Changyou began operations as a business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003, and was carved out as a separate, stand-alone company in December 2007. It completed an initial public offering on April 7, 2009. Changyou has an advanced technology platform that includes advanced 2.5D and 3D graphics engines, a uniform game development platform, effective anti-cheating and anti-hacking technologies, proprietary cross-networking technology and advanced data protection technology. For more information about Changyou, please visit http://www.changyou.com/en/.

About Sohu.com


Sohu.com Inc. (NASDAQ: SOHU) is China's premier online brand and indispensable to the daily life of millions of Chinese, providing a network of web properties and community based/web 2.0 products which offer the vast Sohu user community a broad array of choices regarding information, entertainment and communication. Sohu has built one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of the mass portal and leading online media destination www.sohu.com; interactive search engine www.sogou.com; #1 games information portal www.17173.com; the top real estate website www.focus.cn; #1 online alumni club www.chinaren.com; wireless value-added services provider www.goodfeel.com.cn; leading online mapping service provider www.go2map.com; and developer and operator of online games www.changyou.com/en/.

Sohu corporate services consist of online brand advertising on its matrix of websites as well as bid listing and home page on its in-house developed search directory and engine. Sohu also offers wireless value-added services such as news, information, music, ringtone and picture content sent over mobile phones. Sohu's online game subsidiary, Changyou.com (NASDAQ: CYOU) has a diverse portfolio of online games that includes Tian Long Ba Bu, one of the most popular massively multi-player online ("MMO") games in China, and DDTank, one of the top-ranking Web-based games in China. Sohu.com, established by Dr. Charles Zhang, one of China's internet pioneers, is in its sixteen year of operation

[eastunder]

SOHU - Gap down

[eastunder]

SOHU: Q1 Adj EPS 61c vs $1.36 Beats 53c Est; Guidance Varies from Consensus

Monday , April 30, 2012 06:45ET

QUARTER RESULTS
Sohu.com Incorporated (SOHU) reported Q1 results ended March 2012. Q1 Revenues were $227.00M; +30.18% vs yr-ago; BEATING revenue consensus by +0.53%. Q1 EPS was 53c. Adjusted Q1 EPS was 61c; -55.15% vs yr-ago; BEATING earnings consensus by +15.09%.

Q1 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $227.00M      $174.37M     +30.18%      $225.81M      +0.53% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                 53c           N/A         N/A           N/A         N/A 
 Adj EPS:             61c         $1.36     -55.15%           53c     +15.09% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 

GUIDANCE

Q2-12 Revenue Outlook [$244 - $250M]: The Q2-12 revenue forecast is in-line with current consensus estimates.
Q2-12 Earnings Outlook [40c - 45c]: The Q2-12 earnings forecast is below current consensus estimates.

[eastunder]

Sohu.com, Inc. (SOHU) Tops Q1 EPS by 14c; Guides Q2 EPS Below Views

April 30, 2012 7:04 AM EDT

Sohu.com, Inc. (NASDAQ: SOHU) reported Q1 EPS of $0.61, $0.14 better than the analyst estimate of $0.47. Revenue for the quarter came in at $227 million versus the consensus estimate of $225.81 million.

Sohu.com, Inc. sees Q2 2012 EPS of $0.40-$0.45, versus the consensus of $0.81. Sohu.com, Inc. sees Q2 2012 revenue of $244-$250 million, versus the consensus of $250.78 million.

[eastunder]

Sohu.com Reports First Quarter 2012 Unaudited Financial Results

Monday , April 30, 2012 04:04ET



BEIJING, April 30, 2012 /PRNewswire-Asia-FirstCall/ -- Sohu.com Inc. (NASDAQ: SOHU), China's leading online media, search, gaming, community and mobile service group, today reported unaudited financial results for the first quarter ended March 31, 2012.


First Quarter Highlights

-- Total revenues were US$227 million, up 30% year-over-year and down 8%
quarter-over-quarter.
-- Brand advertising revenues were US$61 million, up 7% year-over-year and
down 22% quarter-over-quarter.
-- Sogou[1] revenues were US$23 million, up 184% year-over-year and down 1%
quarter-over-quarter.
-- Online game revenues reached quarterly record high of US$127 million, up
34% year-over-year and 3% quarter-over-quarter.
-- GAAP net income attributable to Sohu.com Inc. was US$20 million, or
US$0.53 per fully diluted share. Non-GAAP[2] net income attributable to
Sohu.com Inc. was US$24 million, down 46% year-over-year, or US$0.61 per
fully diluted share.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc. commented, "In the first quarter, our financial results were mixed. Our brand advertising business got off to a slow start mainly due to the early Chinese New Year holiday and the softening macroeconomic conditions in China."

Dr. Zhang added, "Good news is search revenues and our overall Sogou business continued to deliver solid growth. And we are pleased with the better than expected results of Changyou, our online game subsidiary. Changyou's flagship games, TLBB and DDTank, continued to rank among the top games in China in the MMO and Web-based game categories, respectively. Shen Qu, a new Web-based game, was well-received by gamers upon launch, adding to the top-line results. For the remainder of 2012, Changyou has four new games due for launch that feature different genres and graphic styles, and are expected to draw new communities of users while expanding the user base."

Commenting on Sohu's brand advertising business, Ms. Belinda Wang, Co-President and COO added, "We had a challenging first quarter in our brand advertising business. The economic slowdown in China clearly had an impact on advertiser sentiment. Because of lackluster auto sales and the slowing real estate market, many automakers and real estate developers decided to defer their marketing plans. While the overall market was soft, e-commerce and fast-moving consumer goods sectors performed relatively well, each posting over 30% year-on-year revenue growth in the first quarter."

First Quarter Financial Results

Revenues

Total revenues for the first quarter of 2012 were US$227 million, up 30% year-over-year and down 8% quarter-over-quarter.

Total online advertising revenues, which include revenues from brand advertising and search and others businesses for the first quarter of 2012, were US$83 million, up 27% year-over-year and down 18% quarter-over-quarter.

Brand advertising revenues for the first quarter of 2012 totaled US$61 million, up 7% year-over-year and down 22% quarter-over-quarter. During the first quarter, Changyou integrated the 17173 Business and aims to make 17173 the platform for new services and products targeted for gamers over the coming year. Brand advertising revenues from the 17173 Business, which decreased 34% quarter-over-quarter and increased 4% year-over-year to US$8.2 million.

Search and others revenues for the first quarter of 2012 were US$22 million, up 171% year-over-year and down 6% quarter-over-quarter. The year-over-year increase was mainly due to increase in revenues from pay-for-click services as a result of increased search traffic and improved monetization of traffic, and increase in revenues from online marketing services on the Sogou Web Directory.

Online game revenues for the first quarter of 2012 were US$127 million, up 34% year-over-year and 3% quarter-over-quarter.

Wireless revenues for the first quarter of 2012 were US$13 million, up 14% year-over-year and down 8% quarter-over-quarter.

Gross Margin

Both GAAP and non-GAAP gross margin was 65% for the first quarter of 2012, compared with 71% in the fourth quarter of 2011 and 73% in the first quarter of 2011.

Online advertising gross margin for the first quarter of 2012 was 39%, compared with 59% in the fourth quarter of 2011 and 56% in the first quarter of 2011. Non-GAAP online advertising gross margin for the first quarter of 2012 was 40%, compared with 59% in the fourth quarter of 2011 and 57% in the first quarter of 2011.

Brand advertising gross margin for the first quarter of 2012 was 39%, compared with 61% in the fourth quarter of 2011 and 62% in the first quarter of 2011. Non-GAAP brand advertising gross margin for the first quarter of 2012 was 40%, compared with 61% in the fourth quarter of 2011 and 63% in the first quarter of 2011. The year-over-year decrease in gross margin was primarily due to increases in content and bandwidth costs. The quarter-over-quarter decrease in gross margin was due to decrease in revenues and increase in content and bandwidth costs.

Both GAAP and non-GAAP gross margin for search and others business in the first quarter of 2012 were 39%, compared with 53% in the fourth quarter of 2011 and 16% in the first quarter of 2011. The year-over-year increase in margin was mainly due to higher revenues from online marketing services. The quarter-over-quarter decrease in margin was mainly due to higher traffic acquisition costs (TAC), bandwidth leasing costs and depreciation costs.

Both GAAP and non-GAAP gross margin for online games in the first quarter of 2012 were 87%, compared with 87% in the fourth quarter of 2011 and 91% in the first quarter of 2011. The year-over-year decline was mainly due to higher bandwidth and server costs as Changyou operated a larger portfolio of online games in the first quarter of 2012 and an increase in headcount.

Both GAAP and non-GAAP gross margin for the wireless business for the first quarter of 2012 were 34%, compared with 37% in the fourth quarter of 2011 and 41% in the first quarter of 2011. The year-over-year and quarter-over-quarter decreases were primarily due to increased revenue share with partners.

Operating Expenses

For the first quarter of 2012, operating expenses totaled $95 million, up 48% year-over-year and down 25% quarter-over-quarter. Non-GAAP operating expenses were $92 million, up 55% year-over-year and down 2% quarter-over-quarter. The year-over-year increase in operating expenses was primarily due to an increase in the number of employees and higher expenses associated with marketing and promotion activities.

Operating Profit

Operating profit for the first quarter of 2012 was US$52 million, down 18% year-over-year and up 7% quarter-over-quarter. Operating margin was 23% for the first quarter of 2012, compared with 20% in the previous quarter and 36% in the first quarter of 2011.

Non-GAAP operating profit for the first quarter of 2012 was US$55 million, down 20% year-over-year and 32% quarter-over-quarter. Non-GAAP operating margin was 24% for the first quarter of 2012, compared with 33% in the previous quarter and 39% in the first quarter of 2011.

Income Tax Expense

For the first quarter of 2012, GAAP income tax expense was US$19 million. Excluding a non-cash income tax expense of US$1 million recorded for tax benefits from share-based awards, non-GAAP income tax expense was US$18 million, compared with US$10 million in the previous quarter. The increase in income tax expenses was primarily due to the increase in the applicable tax rates for the major operating entities.

Net Income

Before deducting the share of net income pertaining to the Non-controlling Interest, GAAP net income for the first quarter of 2012 was US$41 million, down 26% year-over-year and 14% quarter-over-quarter. Non-GAAP net income for the first quarter of 2012 was US$45 million, down 26% year-over-year and 42% quarter-over-quarter.

GAAP net income attributable to Sohu.com Inc. for the first quarter of 2012 was US$20 million, or US$0.53 per fully diluted share. Non-GAAP net income attributable to Sohu.com Inc. for the first quarter of 2012 was US$24 million, or US$0.61 per fully diluted share, down 46% year-over-year and 55% quarter-over-quarter.

Cash Balance

Sohu Group continued to maintain a debt-free balance sheet and a cash position of US$761 million as of March 31, 2012.

Stock Purchase Program

On August 29, 2011, Sohu's board of directors authorized a combined share purchase program of up to US$100 million. As of March 31, 2012, Sohu had repurchased 500,000 Sohu's ordinary shares and 750,000 Changyou's ADSs at an aggregated cost of approximately US$55 million under the share purchase program.

Ms. Carol Yu, Co-President and CFO of Sohu.com Inc. commented, "We are pleased with the healthy momentum in our Sogou and Changyou businesses, and are confident that our investments in online video will bring strategic value to Sohu's future competitiveness."

Supplementary Information for Online Game Results

First Quarter 2012 Operational Results

-- Aggregate registered accounts for Changyou's games[3], excluding the
Web-based games of Shenzhen 7Road Technology Co., Ltd. ("7Road"),
increased 62% year-over-year and 7% quarter-over-quarter to 188.5
million.
-- Aggregate peak concurrent users ("PCU") for Changyou's games, excluding
7Road's Web-based games, increased 8% year-over-year and decreased 8%
quarter-over-quarter to 1.08 million.
-- Aggregate active paying accounts ("APA") for Changyou's games, excluding
7Road's Web-based games, increased 8% year-over-year and decreased 2%
quarter-over-quarter to 3.11 million.
-- Average revenue per active paying account ("ARPU") for Changyou's games,
excluding 7Road's Web-based games, increased 7% year-over-year and 2%
quarter-over-quarter to RMB225.

Business Outlook

For the second quarter of 2012, Sohu estimates:

-- Total revenues to be between US$244 million and US$250 million.
-- Brand advertising revenues to be between $68 million and $71 million;
this implies a sequential increase of 12% to 16%, and a year-over-year
increase of 0.4% to 5%. This includes revenues from 17173 of US$8.5
million to US$9.5 million, which implies a sequential increase of 4% to
16% and a year-over-year increase of 3% to 15%.
-- Sogou revenues to be around US$29 million; this implies a sequential
increase of about 28% and an annual growth of about 113%.
-- Online game revenues to be between US$130 million and US$133 million.
This implies a sequential increase of 2% to 4% and represents an annual
growth of 28% to 31%.
-- Before deducting the share of non-GAAP net income pertaining to the
Non-Controlling interest, non-GAAP net income to be between US$34
million and US$37 million.
-- Non-GAAP net income attributable to Sohu.com Inc. to be between US$15.5
million and US$17.5 million, and non-GAAP fully diluted earnings per
share to be between US$0.40 and US$0.45.
-- Assuming no new grants of share-based awards, we estimate that
compensation expenses and income tax expenses relating to share-based
awards to be around US$3 million to US$4 million. The estimated impact
of this expense is expected to reduce Sohu's fully diluted earnings per
share for the second quarter of 2012 under US GAAP by 8 to 10 cents.




http://www.streetinsider.com/Press+Releases/Sohu.com+Reports+First+Quarter+2012+Unaudited+Financial+Results/7381881.html

[eastunder]

Sohu-Baidu-Tencent Bringing The Fight To Youku-Tudou

April 26, 2012 by: Jiang Z

http://seekingalpha.com/article/530231-sohu-baidu-tencent-bringing-the-fight-to-youku-tudou?source=yahoo


According to Sina Tech, Sohu (SOHU), Baidu, and Tencent have agreed to form a partnership in their online video units in response to the merger of Youku and Tudou to promote content sharing among the three platforms.

The Sohu-Baidu-Tencent partnership will effectively:

Challenge Youku-Tudou's dominance of China's online video market
Lower the cost of content acquisition
Enhance user experience through platform integration and content sharing
Spur additional M&A activities in the industry
Youku-Tudou's Dominance Is Not Guaranteed

In my March 12th note titled, "Youku-Tudou: A Potent Force In China's Online Video Market", I pointed out that:

China's online video industry is undergoing consolidation amid rising bandwidth and content costs, and companies are trying to establish economies of scale through M&A
Youku-Tudou will become the leading online and mobile video platform in China with no clear number 2 in sight
Smaller players, such as Ku6 Media (KUTV), could become attractive acquisition targets as other large players, such as Sohu and Baidu decide to consolidate them to compete against Youku-Tudou
The Sohu-Baidu-Tencent partnership has established a faction that can effectively challenge Youku-Tudou in China's online video market.



Baidu's online video unit, iQiyi, is a critical piece of the partnership. At the end of last year, the unit accounted for approximately 7% of China's online video market, compared to Sohu's 13%. Despite its relatively small market share, iQiyi generates over 230 million unique visits from PC users alone and ranks second in China on time-spent among China's online video service providers, according to both iResearch and ComScore. iQiyi's participation in this partnership is critical because it is unlikely that Sohu can challenge Youku-Tudou with Tencent alone, because Tencent's online video market is insignificant.

Content Price Should Continue to Decline As Industry Consolidates

According to Deng Ye, CEO of Sohu TV, Sohu-Baidu-Tencent will share 12 TV series total and purchase video copyrights together exclusively under the agreement. As the number of competitors that bid for contents decreases, the cost of acquisition is likely to decline and this could be a signal for margin improvements for all three companies.

Viewers Are The Ultimate Beneficiaries

In my view, the ultimate beneficiaries from the fierce competition among Chinese online video providers are the viewers. The integrated online video platform for Sohu-Baidu-Tencent will allow users to:

Access large content library from multiple channels
View quality videos sooner due to lower acquisition cost
Expect More M&A Activities Ahead

The Sohu-Baidu-Tencent partnership changed the industry landscape in which two large factions account for close to 50% of the industry market share, while smaller players, such as Sina (SINA), Xunlei, PPTV, and LeTV, are fragmented among the remaining portion.

The smaller players have limited option on competing against the two large factions due to lack of competing capital for content acquisition. From a strategic perspective, the choices available to the remaining players are:

Focusing on building in-house productions to attract viewers
Merging with one of the larger factions
Forming a partnership within themselves
In my view, the third option is a real possibility among Sina, PPTV, Xunlei, and LeTV, which combine for 21% of the online video market share.

A merger or a partnership between these three players will not only result in similar synergy to that of Sohu-Baidu-Tencent pact in terms of content sharing and acquisition, but, most importantly, create an oligopoly that in theory will allow the few dominant firms to achieve long-run abnormal profit.

The reason why I believe Sina will be part of the pact is that Sina is unlikely to bet its entire future on Weibo, therefore it is likely to follow rival Sohu's footsteps to diversify its revenue stream. Since Sina already lags behind rivals in the online video space, it makes sense for the company to maintain a relevant presence via partnerships.

[eastunder]

Tencent, Sohu, Baidu Unit to Form Online Video Alliance

By Mark Lee - Apr 24, 2012 1:57 PM MT

http://www.bloomberg.com/news/2012-04-24/tencent-sohu-baidu-unit-to-form-online-video-alliance.html?cmpid=yhoo

Tencent Holdings Ltd. (700), Sohu.com Inc. (SOHU) and Baidu Inc. (BIDU)’s iQiyi.com unit said they will form an alliance to offer online video services in China, a month after industry leader Youku Inc. agreed to buy a rival to cut costs.

The agreement between Tencent, Sohu and iQiyi will cover collaboration on content licensing and broadcasts, according to a joint statement e-mailed by the companies yesterday. The partnership will help restore “rational pricing” for video content, it said.

Youku, China’s most-popular online video website, last month agreed to buy Tudou Holdings Ltd. (TUDO) to add online users and help boost pricing power over purchase of content. The deal, valued at $1 billion at the time, would combine two companies that together accounted for more than a third of China’s Web video advertising revenue in the fourth quarter, according to data from Analysys International.

Sohu accounted for 13.3 percent of China’s online video advertising revenue in the fourth quarter, behind Youku’s 21.8 percent and Tudou’s 13.7 percent, according to Analysys. iQiyi, a venture between Baidu and Providence Equity Partners, ranked fourth with a market share of 6.9 percent, according to the Beijing-based researcher.

Tencent, China’s biggest Internet company by market value, rose 0.9 percent to HK$238.80 at the close in Hong Kong, valuing the Shenzhen-based company at HK$440 billion ($56.7 billion). Baidu, owner of China’s most-popular search-engine, and Sohu are both based in Beijing, while their stock are traded in New York.

The deal with Tudou will generate as much as $60 million in cost savings annually, Youku Senior Vice-President Michael Xu said at the time. Both Youku and Tudou are unprofitable as the costs of licensing video content soared for Chinese Internet companies.

[eastunder]

SOHU 1Q earnings 4-30-12 BMO

Sohu.com to Report First Quarter 2012 Financial Results on April 30, 2012

BEIJING, April 16, 2012 /PRNewswire-Asia/ -- Sohu.com Inc. (NASDAQ: SOHU - News), China's leading online media, search, gaming, community and mobile service group, will report its first quarter 2012 unaudited financial results on Monday, April 30, 2012, before U.S. market hours.

[eastunder]

SOHU Open Gaps Chart

Direction Date range  
 down Feb-06-2012 61.52 to 55.25 
 up Mar-08-2012 48.4 to 48.43 (.03 gap)

Feb 6: 61.52 to 55.25



Mar-08-2012 48.4 to 48.43 (.03 gap)

[eastunder]

SOHU : Working on filling that gap @ 61.52

Open Gaps

Direction Date range  
 up Mar-08-2012 48.4 to 48.43  
 down Feb-06-2012 61.52 to 55.25  
 down Oct-31-2011 65.35 to 64.51 

working on getting the simples back in order: 5d,9d above the 50d...14d and 20d in pursuit for cross.



K.I.S.S. : Solid up trend for a Longerterm move will take full order of 5,9,14,20,50, and 200 as seen in Sept.

[eastunder]

That's wonderful Nate!

Well done!

Jen

[num1inv]

Not at all..... bought on a dip in the am and my options are up almost 100% already :)

Cheers,

Nate

[eastunder]

I hope I didn't cause any confusion by posting that several days after it was written.

Since I tend to be in a stock for a long time 'speed in posting articles' is not one of my strong suits. ;)

Sorry about that! LOL

Good luck Nate!

[num1inv]

:) ... saw that a couple days ago from a report by Citron Research.... their first positive view on a company in a while, in a long string of 'scam/fraud' alerts.

Picked up some options yesterday morning..

Cheers and GL,

Nate

[eastunder]

Insider Buys And Sells: Sohu, Tesla

http://seekingalpha.com/article/442111-insider-buys-and-sells-sohu-tesla?source=yahoo

Insider Sell Buy Ratio March 16, 2012

Note: As mentioned in the first post in this series Introduction to Insider Weekends, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Notable Insider Buys:

1. Sohu.com Inc. (SOHU): $53.88

Chief Operating Officer Xin Wang acquired 60,000 shares of this Chinese online media company, paying $49.43 per share for a total amount of $2.97 million. Mr. Wang increased his stake by 200% to 90,000 shares with this purchase.

http://www.sec.gov/Archives/edgar/data/1104188/000118143112016185/xslF345X03/rrd338225.xml

This is the first insider purchase we have seen at Sohu since we started tracking insider data two years ago. The stock is trading close to its 52 week low and trades for 3.5 times EBITDA. Reaction to this purchase that came in last Monday was initially muted but then the stock posted a gain of 5.5% on Friday.


P/E: 13.69
Forward P/E: 11.34
Industry P/E: N/A
P/S: 2.28
Price/Book: 1.93
EV/EBITDA: 3.47
Market Cap: $2.05B
Avg. Daily Volume: 1,470,140
52 Week Range: $45.4 – $109.37

[eastunder]

And the market agrees with you:

[beklein]

Sohu is way oversold here....P/E is a fraction of its competitors baidu and sina, yet sohu remains one of the few internet based companies in China that returns positive earnings, its PEG over the next 5 years is 0.76 indicating solid growth potential and this company's growth YOY is 25%+++.

Lets not forget Wellington, JP, and Morgan Stanley have a combined staked of 350 million in this company.

Analysts mean target estimate for Sohu is $67.

[eastunder]

Gap: Rise to fill 61.52

Open Gap
Direction Date range
down Feb-06-2012 61.52 to 55.25

[eastunder]

SOHU

[eastunder]

Nope. Gonna go for the ol' triple bottom.

[eastunder]

Found the bottom bollie. Holding?

[eastunder]

Analyst 'Cautiously Positive' on Sohu (SOHU) as Shares Continue Lower

3:36 pm ET 02/07/2012 - Street Insider


While analysts at Susquehanna and RBS downgraded shares of Sohu.com (Nasdaq: SOHU) Tuesday following Monday's fourth-quarter results and guidance and the resulting 15 percent decline, Nomura's Jin Yoon is "cautiously positive" on the name. The downgrades seem to be weighing on bulls Tuesday afternoon, however: shares last traded at $51.76, down 3 percent for the session.

Yoon reiterated a previous assumption that online videos are continuing to cannibalize display ads and, consequently, tighten margins. The analyst insists the company's branded-ad unit depends on a strong online video market.

Nomura maintains a Neutral rating and $60 price target on Sohu.com shares.

[eastunder]

Susquehanna Downgrades Sohu.com (SOHU) to Neutral

February 7, 2012 7:41 AM EST

Susquehanna downgraded Sohu.com (NASDAQ: SOHU) from Positive to Neutral, price target lowered from $72 to $56.

For an analyst ratings summary and ratings history on Sohu.com click here. For more ratings news on Sohu.com click here.

Shares of Sohu.com closed at $53.41 yesterday, with a 52 week range of $45.40-$109.37.

[eastunder]

RBS Downgrades Sohu.com (SOHU) to Hold

February 7, 2012 7:25 AM EST

RBS downgraded Sohu.com (NASDAQ: SOHU) from Buy to Hold, price target chopped from $104 to $55.

(That's a pretty hefty chop.)

For an analyst ratings summary and ratings history on Sohu.com click here. For more ratings news on Sohu.com click here.

Shares of Sohu.com closed at $53.41 yesterday, with a 52 week range of $45.40-$109.37.

[eastunder]

Oh it certainly does - the question is when? Tomorrow? The day after? I was thinking a test of the bottom bollie would be fine with me.

Personally - I think that was a bit of an over reaction today. I always expect SOHU to drop the day of earnings - but please! That much? In one day? Over kill. She should have been taken down a little slower.

And Yes - I get around. :)

I get around to my other boards.

Truth is I stick with the same group of stocks and theres about 36. Sometimes I add new ones and remove others... So of course you will run into me, Craps. LOL!

You are picking my stocks! ;)

[THECRAPSMAN]

LOL I see you all over.I wonder if SOHU has a bounce in it?

[eastunder]

Sohu Profit Declines as Acquisition Costs Erode Earnings From Advertising

By Mark Lee - Feb 6, 2012 1:50 AM MT .

Sohu.com Inc. (SOHU), owner of China’s third-biggest search-engine, posted an unexpected 39 percent decline in profit as the company incurred a charge from acquisitions, eroding higher advertising and games sales.

Fourth-quarter net income was $25 million, or 65 cents a share, from $41.5 million, or $1.07, a year earlier, the Beijing-based company said in a statement today. This compared with the $48.7 million average of seven analysts’ estimates compiled by Bloomberg. Sales rose 42 percent to $246 million from $173.2 million.

Sohu’s results included a $27.5 million impairment charge on acquisitions, according to the statement. The Chinese company also forecast revenue this quarter that missed analysts’ estimates by as much as 8.8 percent. First-quarter revenue may rise to between $219 million and $225 million. This compares with the $240 million average of eight analysts’ estimates.

Sohu rose 2.7 percent to $63.05 in New York trading on Feb. 3. The stock has advanced 26 percent this year, outperforming the 16 percent gain in Baidu Inc. (BIDU), China’s biggest Internet company by market value.

Sohu accounted for 2.7 percent of China’s search-engine market by revenue last quarter, according to research company Analysys International. Baidu Inc. (BIDU) increased its market share to 78.3 percent, while Google Inc. (GOOG) declined to 16.7 percent, according to Analysys.

[eastunder]

Misses - beats - misses - beats?

GAAP vs Non-GAAP. Which they would all stick to one or the other.

Perception. It's an interesting thing.

Especially when it comes to a miss or beat of estimates

Issue at hand: GUIDANCE.

There's A slow Q ahead for SOHU

[eastunder]

Sohu.com, Inc. (SOHU) Tops Q4 EPS by 12c; Guides Q1 adj.-EPS Below Views

February 6, 2012 6:34 AM EST

http://www.streetinsider.com/Earnings/Sohu.com%2C+Inc.+%28SOHU%29+Tops+Q4+EPS+by+12c%3B+Guides+Q1+adj.-EPS+Below+Views/7137901.html

Sohu.com, Inc. (NASDAQ: SOHU) reported Q4 EPS of $1.36, $0.12 better than the analyst estimate of $1.24. Revenue for the quarter came in at $246 million versus the consensus estimate of $243.75 million.

Sohu.com, Inc. sees Q1 2012 EPS of $0.50-$0.55, versus the consensus of $1.13. Sohu.com, Inc. sees Q1 2012 revenue of $219-$225 million, versus the consensus of $238.15 million.

[eastunder]

..

Sohu.com Reports Fourth Quarter and Fiscal Year 2011 Unaudited Financial Results

Fourth Quarter of 2011:
Record Total Revenues of US$246 Million, Up 42% Year-over-Year
GAAP Net Income Before Non-Controlling Interest was US$47 Million, Non-GAAP Net Income Before Non-Controlling Interest was US$77 Million, Exceeding the High End of Group Guidance by US$3 Million;
GAAP Fully Diluted EPS of US$0.65, Non-GAAP Fully Diluted EPS of US$1.36, Exceeding the High End of Group Guidance by 1 US Cent
Fiscal Year 2011:
Record Total Revenues of US$852 Million, Up 39% Year-over-Year
GAAP Net Income Before Non-Controlling Interest was US$228 Million, Non-GAAP Net Income Before Non-Controlling Interest was US$273 Million;
GAAP Fully Diluted EPS of US$3.93, Non-GAAP Fully Diluted EPS of US$4.96

BEIJING, Feb. 6, 2012 /PRNewswire-Asia/ -- Sohu.com Inc. (NASDAQ: SOHU - News), China's leading online media, search, gaming, community and mobile service group, today reported unaudited financial results for the fourth quarter ended December 31, 2011.

Fourth Quarter Highlights
•Record total revenues and record revenues in brand advertising, Sogou(1) and online game businesses.
•Total revenues were US$246 million, up 42% year-over-year and 6% quarter-over-quarter.
•Total online advertising revenues which include revenues from brand advertising and Sogou business were US$101 million, up 51% year-over-year and 6% quarter-over-quarter.
•Brand advertising revenues were US$78 million, up 29% year-over-year and 2% quarter-over-quarter.
•Sogou revenues were US$23 million, up 248% year-over-year and 25% quarter-over-quarter.
•Online game revenues reached US$123 million, up 34% year-over-year and 6% quarter-over-quarter.
•GAAP net income attributable to Sohu.com Inc. was US$25 million, or US$0.65 per fully diluted share. GAAP net income included non-cash charges of US$27.5 million related to goodwill impairment and impairment of acquired intangibles via acquisition of businesses. Non-GAAP(2) net income attributable to Sohu.com Inc. was US$53 million, up 10% year-over-year and 8% quarter-over-quarter or US$1.36 per fully diluted share.


Fiscal Year 2011 Highlights
•Record total revenues and record revenues in brand advertising, Sogou, and online game businesses.
•Total revenues were US$852 million, up 39% year-over-year.
•Total online advertising revenues which include revenues from brand advertising and Sogou business were US$342 million, up 48% year-over-year.
•Brand advertising revenues were US$279 million, up 32% year-over-year.
•Sogou revenues were US$63 million, up 238% year-over-year.
•Online game revenues reached US$436 million, up 33% year-over-year.
•GAAP net income attributable to Sohu.com Inc. was US$153 million, up 9% year-over-year or US$3.93 per fully diluted share. Non-GAAP net income attributable to Sohu.com Inc. was US$193 million, up 18% year-over-year or US$4.96 per fully diluted share.


Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc. commented, "We are pleased to report a strong fourth quarter that helped us finish a solid year for 2011. For online advertising, our conscientious efforts in growing online video and search businesses are bringing strong growth in revenues, users and traffic. These businesses, along with our portal business, are contributing to give the Sohu Group a powerful integrated online marketing platform. In 2012, we aim to make this platform even more dominant in China's internet market."

Dr. Zhang added, "For online game business, in 2011 Changyou achieved healthy growth in its MMO game portfolio and diversified into other fast growing areas such as Web-based games. In 2012, with our leading game information portal 17173.com under its leadership, Changyou will jumpstart a platform-based initiative."

Commenting on Sohu's brand advertising business, Ms. Belinda Wang, Co-President and COO added, "We had a strong year in our brand advertising business. In 2011, the internet population in China exceeded 500 million and we witnessed a continuing trend where marketing spending by brand advertisers has been shifting from offline to online."

Fourth Quarter Financial Results

Revenues

Total revenues for the fourth quarter of 2011 were US$246 million, up 42% year-over-year and 6% quarter-over-quarter.

Total online advertising revenues for the fourth quarter of 2011 were US$101 million, up 51% year-over-year and 6% quarter-over-quarter.

Brand advertising revenues for the fourth quarter of 2011 totaled US$78 million, up 29% year-over-year and 2% quarter-over-quarter. The increases were mainly due to healthy advertising demand from fast-moving consuming goods and online game sectors.

Sogou revenues for the fourth quarter of 2011 were US$23 million, up 248% year-over-year and 25% quarter-over-quarter. The increases were mainly due to increased search traffic and improved monetization of traffic.

Online game revenues for the fourth quarter of 2011 were US$123 million, up 34% year-over-year and 6% quarter-over-quarter.

Wireless revenues for the fourth quarter of 2011 were US$14 million, up 1% year-over-year and 2% quarter-over-quarter.

Gross Margin

Gross margin was 71% for the fourth quarter of 2011, compared with 71% in the third quarter of 2011 and 74% in the fourth quarter of 2010. Non-GAAP gross margin for the fourth quarter of 2011 was 71%, compared with 71% in the third quarter of 2011 and 75% in the fourth quarter of 2010.

Online advertising gross margin for the fourth quarter of 2011 was 60%, compared with 59% in the third quarter of 2011 and 57% in the fourth quarter of 2010. Non-GAAP online advertising gross margin for the fourth quarter of 2011 was 60%, compared with 59% in the third quarter of 2011 and 60% in the fourth quarter of 2010.

Brand advertising gross margin for the fourth quarter of 2011 was 58%, compared with 59% in the third quarter of 2011 and 60% in the fourth quarter of 2010. Non-GAAP brand advertising gross margin for the fourth quarter of 2011 was 59%, compared with 59% in the third quarter of 2011 and 63% in the fourth quarter of 2010. The decrease in gross margin was primarily due to increases in content and bandwidth costs.

Both GAAP and non-GAAP gross margin for Sogou in the fourth quarter of 2011 were 65%, compared with 59% in the third quarter of 2011 and 32% in the fourth quarter of 2010. The margin expansion was mainly due to improved monetization as revenue growth outpaced the growth in total costs.

Both GAAP and non-GAAP gross margin for online games in the fourth quarter of 2011 were 87%, compared with 87% in the third quarter of 2011 and 90% in the fourth quarter of 2010.

Both GAAP and non-GAAP gross margin for the wireless business for the fourth quarter of 2011 were 37%, compared with 39% in the third quarter of 2011 and 45% in the fourth quarter of 2010. The decrease was primarily due to product mix change and increased revenue share with partners.

Operating Expenses

For the fourth quarter of 2011, operating expenses totaled $127 million, which included US$27.5 million non-cash charges related to goodwill impairment and impairment of intangibles via acquisitions of businesses. The goodwill impairment and impairment of acquired intangibles via acquisition of businesses are mainly related to Sohu's wireless and Changyou's cinema advertising businesses. For the fourth quarter of 2011, non-GAAP operating expenses were $95 million, up 72% year-over-year and 8% quarter-over-quarter. The increase in non-GAAP operating expenses was primarily due to an increase in the number of employees, average compensation and higher expenses associated with marketing and promotion activities.

Operating Profit

Operating profit for the fourth quarter of 2011 was US$49 million, down 26% year-over-year and 34% quarter-over-quarter. Operating margin was 20% for the fourth quarter of 2011, compared with 32% in the previous quarter and 38% in the fourth quarter of 2010.

Non-GAAP operating profit for the fourth quarter of 2011 was US$81 million, up 9% year-over-year and 3% quarter-over-quarter. Non-GAAP operating margin was 33% for the fourth quarter of 2011, compared with 33% in the previous quarter and 43% in the fourth quarter of 2010.

Income Tax Expense

For the fourth quarter of 2011, GAAP income tax expense was US$11 million. Excluding a non-cash income tax expense of US$1.6 million recorded for tax benefits from share-based awards and deferred tax liability impact on goodwill and acquired intangibles via acquisition of businesses impairment of 1 million, non-GAAP income tax expense was US$10 million, compared with US$14 million in the previous quarter.

Starting 2012, one of Sohu's China-based subsidiaries, Beijing Sohu New Media Information Technology Co., Ltd. ("Sohu New Media") is subject to a 15% income tax rate for the next two years versus 7.5% in 2011.

Net Income

Before deducting the share of net income pertaining to the Non-controlling Interest, GAAP net income for the fourth quarter of 2011 was US$47 million, down 18% year-over-year and 27% quarter-over-quarter. Non-GAAP net income for the fourth quarter of 2011 was US$77 million, up 19% year-over-year and 11% quarter-over-quarter, exceeding the high end of the Group's expectations.

GAAP net income attributable to Sohu.com Inc. for the fourth quarter of 2011 was US$25 million, or US$0.65 per fully diluted share. Non-GAAP net income attributable to Sohu.com Inc. for the fourth quarter of 2011 was US$53 million, or US$ 1.36 per fully diluted share, up 10% year-over-year and 8% quarter-over-quarter.

Cash Balance

Sohu Group continued to maintain a debt-free balance sheet and a strong cash position of US$733 million as of December 31, 2011.

Fiscal Year 2011 Financial Results

Revenues

Total revenues for fiscal year 2011 were US$852 million, up 39% compared with 2010.

Total online advertising revenues for fiscal year 2011 were US$342 million, up 48% compared with 2010.

Brand advertising revenues for fiscal year 2011 totaled US$279 million, up 32% compared with 2010.

Sogou revenues for fiscal year 2011 were US$63 million, up 238% compared with 2010.

Online game revenues for fiscal year 2011 were US$436 million, up 33% compared with 2010.

Wireless revenues for fiscal year 2011 were US$52 million, down 1% compared with 2010.

Gross Margin

Both GAAP and non-GAAP gross margin was 72% for fiscal year 2011, compared with GAAP gross margin of 74% and non-GAAP gross margin of 75% in 2010.

Online advertising gross margin for fiscal year 2011 was 59%, compared with 56% in 2010. Non-GAAP online advertising gross margin for fiscal year 2011 was 60%, compared with 58% in 2010.

Both GAAP and Non-GAAP brand advertising gross margin for fiscal year 2011 was 60%, compared with GAAP brand advertising gross margin of 59% and non-GAAP brand advertising gross margin of 61% in 2010.

Both GAAP and non-GAAP gross margin for Sogou for fiscal year 2011 were 58%, compared with 24% in 2010. The increase was mainly due to improved monetization as revenue growth outpaced the growth in total costs.

Both GAAP and non-GAAP gross margin for online games for fiscal year 2011 were 89%, compared with 91% in 2010.

Both GAAP and non-GAAP gross margin for the wireless business for fiscal year 2011 were 39%, compared with 46% in 2010. The decline was primarily due to product mix change and increased revenue share with partners.

Operating Expenses

For fiscal year 2011, Sohu's operating expenses totaled US$361 million, up 63% compared with 2010. The year-over-year increase primarily reflects an increase in salaries and compensation expenses as a result of increased headcount, higher expenses associated with marketing and promotion activities and non-cash impairment charges to goodwill and impairment of intangibles via acquisitions of businesses recorded in the fourth quarter of 2011.

Operating Profit

Operating profit for fiscal year 2011 was US$254 million, up 10% compared with 2010. Operating margin was 30% for fiscal year 2011, compared with 38% in 2010.

Non-GAAP operating profit for fiscal year 2011 was US$300 million, up 16% compared with 2010. Non-GAAP operating margin was 35% for fiscal year 2011, compared with 42% in 2010. The decrease in non-GAAP operating margin was mainly due to an increase in the number of employees, average compensation and increases in marketing expenses.

Income Tax Expense

For fiscal year 2011, GAAP income tax expense was US$47 million. Excluding a non-cash income tax expense of US$3 million recorded for tax benefits from share-based awards and deferred tax liability impact on goodwill and intangible asset impairment of 1 million, non-GAAP income tax expense was US$45 million, compared with US$35 million in 2010.

Net Income

Before deducting the share of net income pertaining to the Non-controlling Interest, GAAP net income for fiscal year 2011 was US$228 million, up 15% compared with 2010. Non-GAAP net income for fiscal year 2011 was US$273 million, up 21% compared with 2010.

GAAP net income attributable to Sohu.com Inc. for fiscal year 2011 was US$153 million, or US$3.93 per fully diluted share. Non-GAAP net income attributable to Sohu.com Inc. for fiscal year 2011 was US$193 million, or US$ 4.96 per fully diluted share, up 18% compared with 2010.

Ms. Carol Yu, Co-President and CFO of Sohu.com Inc. commented, "Our increased investment in online video and other areas, coupled with slow seasonality, no doubt will put weight on our short-term financial results. Nonetheless, with the strong foothold we achieved in 2011 for both online advertising and online games, I am optimistic that we will build an even stronger Sohu in 2012 and the years ahead. "

Supplementary Information for Online Game Results

Fourth Quarter 2011 Operational Results
•Aggregate registered accounts for Changyou's games(3), excluding the Web-based game of Shenzhen 7Road Technology Co., Ltd. ("7Road"), increased 58% year-over-year and 10% quarter-over-quarter to 175.5 million.
•Aggregate peak concurrent users ("PCU") for Changyou's games, excluding 7Road's Web-based game, increased 14% year-over-year and 2% quarter-over-quarter to 1.17 million.
•Aggregate active paying accounts ("APA") for Changyou's games, excluding 7Road's Web-based game, increased 18% year-over-year and 5% quarter-over-quarter to 3.17 million.
•Average revenue per active paying account ("ARPU") for Changyou's games, excluding 7Road's Web-based game, increased 1% year-over-year and 2% quarter-over-quarter to RMB221, which is consistent with Changyou's intention to have ARPU within a range that keeps Changyou's games affordable for the majority of Chinese game players.


Other Business Developments in the Fourth Quarter of 2011

SOHU completes selling of the 17173 Business

On December 15, 2011, Sohu completed the selling to Changyou of the 17173 Business for fixed cash consideration of US$162.5 million.

Business Outlook

For the first quarter of 2012, Sohu estimates:
•Total revenues to be between US$219 million and US$225 million.
•Brand advertising revenues, including those from 17173.com, to be between $60 million and $63 million; this implies a sequential decrease of 19% to 23%, and an increase of 5% to 10% year-over-year.
•Sogou revenues to be around US$21 million; this implies a sequential decrease of about 9% and an annual growth of about 163%.
•Online game revenues to be between US$121 million and US$124 million.
•Before deducting the share of non-GAAP net income pertaining to the Non-Controlling interest, non-GAAP net income to be between US$38 million and US$41 million.
•Non-GAAP net income attributable to Sohu.com Inc. to be between US$19.5 million and US$21.5 million, and non-GAAP fully diluted earnings per share to be between US$0.50 and US$0.55.
•Assuming no new grants of share-based awards, we estimate that compensation expenses and income tax expenses relating to share-based awards to be around US$3 million to US$4 million. The estimated impact of this expense is expected to reduce Sohu's fully diluted earnings per share for the first quarter of 2012 under US GAAP by 8 to 10 cents.

http://finance.yahoo.com/news/Sohu-com-Reports-Fourth-prnews-1690165300.html?x=0

[eastunder]

SOHU: Q4 EPS 65c vs $1.07 Misses $1.21 Est; Guidance Below Consensus

Monday , February 06, 2012 07:35ET

QUARTER RESULTS
Sohu.com Incorporated (SOHU) reported Q4 results ended December 2011. Q4 Revenues were $246.20M; +42.18% vs yr-ago; BEATING revenue consensus by +1.01%. Q4 EPS was 65c; -39.25% vs yr-ago; MISSING earnings consensus by -46.28%.

Q4 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $246.20M      $173.16M     +42.18%      $243.75M      +1.01% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                 65c         $1.07     -39.25%         $1.21     -46.28% 
 ----------  ------------  ------------  ----------  ------------  ----------

YEAR-END RESULTS
Co. also reported Year-End results ended December 2011. FY Revenues were $852.10M; +39.05% vs yr-ago; BEATING revenue consensus by +1.16%. FY EPS was $3.93; +8.56% vs yr-ago; MISSING earnings consensus by -14.57%.

FY RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $852.10M      $612.78M     +39.05%      $842.29M      +1.16% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:               $3.93         $3.62      +8.56%         $4.60     -14.57% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 

GUIDANCE

Q1-12 Revenue Outlook [$219 - $225M]: The Q1-12 revenue forecast is below current consensus estimates.
Q1-12 Earnings Outlook [50c - 55c]: The Q1-12 earnings forecast is below current consensus estimates.

[eastunder]

..
Earnings Preview: Sohu.com
By Zacks Equity Research | Zacks – Fri, Feb 3, 2012 3:35 PM EST..


Sohu.com Inc. (NasdaqGS:SOHU - News) is set to report its fourth quarter and full-year 2011 results on February 6, 2012, before the market opens. Sohu reported a mixed third quarter, as the company missed the Zacks Consensus estimates by a penny, despite beating revenues handily.

Sohu’s third quarter earnings increased 15.8% year over year to $1.17 per share (including stock-based compensation) based on a 42.0% total revenue growth in the quarter. Despite the mixed results, Sohu provided an upbeat fourth quarter guidance and forecasted total revenue to be in the range of $241.0 million to $246.0 million.

Sohu expects EPS in the range of $1.30 to $1.35. For further details please see Sohu Misses on Higher Expenses.

Estimate Revision Trend

Currently, the Zacks Consensus Estimate for the fourth quarter is pegged at $1.23, up 15.0% from $1.07 reported in the year-ago quarter. This is based on an estimated revenue growth of 40.5% year over year to $243.0 million.

In the last 30 days, none of the nine analysts covering the stock revised their estimates for the fourth quarter. We note that Sohu has posted an average earnings surprise of 4.90% in the trailing four quarters, implying that it has outdone the Zacks Consensus Estimate by the same magnitude for the last four quarters. We don’t expect a major change in the earnings trend pattern for the current quarter.

Our Recommendation

According to a latest report from China Internet Network Information Center (:CNNIC), the number of Internet surfers in China reached approximately 513.1 million at the end of calendar year 2011. Strong user growth was noticed in the search and online video market over the last twelve months. This trend bodes well for Sohu going forward, as the company continues to increase its investments in search and online video.

As per the latest data from market research firm Analysys International, Sohu Video had 13.3% of China's online video market at the end of fourth quarter of calendar 2011; lagging #2 placed Tudou Holdings Ltd. (NasdaqGM:TUDO - News) by just 40 basis points. We believe that ongoing content additions (domestic, as well as American television dramas) will boost Sohu’s online video market share going forward.

In the third quarter, Sohu entered into a partnership with MSN China to build an exclusive online video platform for MSN, solely operated by Sohu video. Management believes this to be an exciting opportunity for Sohu as it will increase its traffic and monetization growth due to the comparative affluence of the MSN users. We believe that the partnership will help Sohu to faster penetrate the online video market in the near term.

Sogou continues to gain market share due to the popularity of its browser, which drove maximum traffic on the search engine in the recent past. We believe that Sogou is also benefiting from the pre-mature withdrawal of Google Inc. (NasdaqGS:GOOG - News) from China as erstwhile Google users are now shifting to Sogou rather than to Baidu Inc. (NasdaqGS:BIDU - News).This is expected to further boost Sohu’s market share going forward.

Sohu is also expected to benefit from its strength in online games. We believe that Sohu’s promising games portfolio and the growing popularity of Changyou’s games will drive profitability over the long term. Sohu has a solid game pipeline including Battlefield Online and a couple of massively multiplayer online games (:MMO) which will further boost its top-line growth going forward.

However, higher operating costs due to continued investments in video may hurt profitability in the near term. Moreover, cut-throat competition and increasing government scrutiny into Chinese Internet usage may also hurt Sohu’s growth over the long term. We, therefore, maintain our Neutral recommendation on the stock over the long term.

We note that the stock has appreciated approximately 18.0% over the last one month compared to a 3.8% increase in the S&P 500. Considering Sohu’s growth opportunities in the near term, we believe that the shares are undervalued. Currently, Sohu has a Zacks #1 Rank, which implies a short-term Strong Buy rating.

[eastunder]

CONSENSUS ESTIMATES:

SOHU: To Release Q4 Results Feb 06 [BMO]

Friday , February 03, 2012 13:00ET

Sohu.com Incorporated (Nasdaq NM: SOHU) is scheduled to release its Q4 financial results on February 06, 2012, before the market opens (BMO).

CONSENSUS ESTIMATES:

Q4 Revenue: $243.75 million
Q4 EPS: $1.21 per share

FY Revenue: $842.29 million
FY EPS: $4.60 per share

PREVIOUS PERIOD:

Prev Q4 Revenue: $173.16 million
Prev Q4 EPS: $1.07 per share

Prev FY Revenue: $612.78 million
Prev FY EPS: $3.62 per share

[eastunder]

Very interesting. Thank you!

[sharpshorts]

Re: 2B dragons… reply to eastunder


I heard of the “dragon” pattern years ago from a trader who posted charts on dacharts.com , in Buffy’s Bline room. His was an intra-day pattern describing the price action he saw in the e-mini futures charts. I applied the idea to double bottom patterns on daily charts and dubbed them 2B dragons…

In answering your questions, bear in mind that every 2B dragon is subject to interpretation by the viewer … the rear feet, front feet and hump are easily ID’ed but the tail target(s) and head are not always as easy to see.

SOHU’s chart is not a particularly ‘good looking’ dragon compared to the Alcoa chart example but the top of SOHU’s tail would be ($109) on that chart because that’s where the down trend started… Double bottoms, i.e. 2B dragons are trend reversal patterns IMO, so SOHU’s price action ‘should’ reverse or retrace the down trend from the tail….$69 is the top of the dragon’s hump and a likely resistance area…$83 and $89 are shorter term “top of tail” target areas.

Determining the dragon’s “head” is just as subjective as deciding on a top of tail…SOHU’s dragon head consolidation may have already happened in late DEC or early JAN…OR it may happen near the hump at $69 as you speculated. That level did serve as both support in JUNE & AUG and as resistance in OCT.

[eastunder]

Never even heard of a 2B double dragon bottom pattern.

The things you learn on the net, right?

Thanks for making me look!

(BTW: if ones screen is wide enough - these two charts sit side by side)


Would the top of the tail be your 83 or 89 line?

And am I to assume the head will be created via resistance at the hump?

[sharpshorts]

2B dragon double bottom pattern potential SOHU...bullish

[eastunder]

SOHU 4Q FY earnings 2-06-12 BMO


Sohu.com to Report Fourth Quarter and Fiscal Year 2011 Financial Results on February 6, 2012

Today : Friday 20 January 2012

Sohu.com Inc. (NASDAQ: SOHU), China's leading online media, search, gaming, community and mobile service group, will report its fourth quarter and fiscal year 2011 unaudited financial results on Monday, February 6, 2012, before U.S. market hours.

(Logo: http://photos.prnewswire.com/prnh/20100201/CNM013LOGO )

Sohu's management team will host a conference call on the same day at 8:30 a.m. U.S. Eastern Time, February 6, 2012 (9:30 p.m. Beijing/Hong Kong time, February 6, 2012) following the quarterly and fiscal year results announcement.

The dial-in details for the live conference call are:


US Toll-Free:


[phone]


International:


[phone]


Hong Kong:


[phone]


China Mainland


[phone] / [phone]


Passcode:


SOHU

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call.

A telephone replay of the call will be available after the conclusion of the conference call at 11:30 a.m. Eastern Time on February 6 through February 13, 2012. The dial-in details for the telephone replay are:

International:


[phone]

Passcode:


43099896

The live webcast and archive of the conference call will be available on the Investor Relations section of Sohu's website at http://corp.sohu.com/.

[eastunder]

SOHU 56.02 gap

(currently still an intraday gap)

[eastunder]

Finviz chart: SOHU knocking on the line:

[eastunder]

SOHU 3 year

[eastunder]

SOHU - Finviz chart

[eastunder]

SOHU

[eastunder]

SOHU Intraday:

15 min/10 d

[eastunder]

UBS Upgrades Sohu.com (SOHU) to Buy

9:59 am ET 12/01/2011 - Street Insider


UBS upgraded Sohu.com (NASDAQ: SOHU) from Neutral to Buy, price target raised from $80 to $85.

[eastunder]

SOHU:

12-1-11

50.80

[eastunder]

Entry into a Material Definitive Agreement, Other Events, Financial Statements and E

http://biz.yahoo.com/e/111201/sohu8-k.html

[eastunder]

UPDATE 1-Changyou to buy 17173.com from Sohu for $162.5 mln

Tue Nov 29, 2011 11:15pm EST


Nov 29 (Reuters) - Chinese online game developer and operator Changyou.com Ltd said it will buy game information portal 17173.com from search engine firm Sohu for $162.5 million in cash.

As part of the deal, Sohu agreed not to compete with Changyou in the 17173 business for five years after the closing of the transaction, Changyou said.

17173.com is a news provider and advertising medium for games in China.

"As a leading online destination for gamers in China, 17173 has strong media presence in the games sector and a vast base of users for which we can develop services and tools to grow 17173 into a leading platform and one-stop-shop service-provider for gamers," Changyou's chief executive, Tao Wang, said in a statement.

[eastunder]

UPDATE 1-Sohu.Com Q3 profit rises

Mon Oct 31, 2011 3:00am EDT

Oct 31 (Reuters) - Chinese internet portal Sohu.com Inc's third-quarter profit rose 19 percent, helped mainly by higher revenue from its online advertising and online gaming businesses

Net income for the quarter rose 19 percent to $64.3 million, or $1.17 a share, from last year.

Total revenue for Sohu.com, which competes with Sina Corp , NetEase.com and Tencent Holdings , rose 42 percent to $233 million.

The key online gaming segment, which makes up more than half of Sohu's total revenue, rose 35 percent to $115.8 million, while online brand advertising revenue rose to $76.6 million.

Analysts on average were expecting the company to earn $1.18 per share, on revenue of $228.3 million, according to Thomson Reuters I/B/E/S.

The company said it expected fourth-quarter non-GAAP earnings of $1.30-$1.35 per share on revenue of $241-$246 million.