Sohu.com a Key Beneficiary of Qihoo Technology's Much Anticipated IPO

Xiaofan Zhang submits:

Shares of Sohu.com (SOHU) surged 7.81% on Tuesday, the most among all Chinese Internet stocks. I believe such strong performance was driven by investors' spill-over enthusiasm toward popular upcoming IPO Qihoo Technology (QIHU), as the market eagerly searched for alternative ways to play the Qihoo IPO, which was priced 16% higher than the high-end of its originally planned range of $10.50 to $12.50 a share. Despite trading near its 52-week high, I believe SOHU still has plenty of upside ahead. Below is my analysis:

Similarity to Qihoo has led to SOHU's strong performance. At its core, Qihoo's business model is to offer advertising and value-added services around highly popular desktop client software such as 360 Safe Guard, 360 Anti-virus, and 360 Safe Browser. SOHU outperformed all peers on Tuesday because it offers the most similarity to Qihoo. In the past several years, Sohu has achieved great success in the area


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