Could their earnings decrease have something to do with the "backdoor controversy"? Corporate bashing is not uncommon, in this case, West vs East. Tons of users fled from Qihoo back when that unverified scandal came out. Ironic, really. The other way 'round, China doesn't trust Western companies either, http://www.reuters.com/article/2014/06/10/us-microsoft-qihoo-idUSKBN0EL07A20140610
A Qihoo concern
- Thread starter cruelsister
- Start date
- Apr 13, 2013
- 3,151
No. The libel occurred in early (end of February, I believe) 2013. As stock price is directly proportional (mostly) to earnings, note a stock price chart covering the date range 2/13 to 3/14:
it can be seen that everyone realized the article was libelous, especially as it couldn't be confirmed by Qihoo's rivals (which they certainly would have done).
But what is more concerning occurred today:
(Source: http://blogs.barrons.com/asiastocks...s-online-lottery-sales-affects-netease-qihoo/
China suspended online lottery sales starting March 1. Sina’s tech site reported that 38 Chinese Internet platforms, including Alibaba Group (BABA), Tencent Holdings (0700.HK/TCEHY) and Netease (NTES), have suspended online lottery sales in the past weekend.
Online lottery market was growing fast. According to Analysys, a market research firm, the total gross merchandize volume of online lottery in the third-quarter last year jumped 43% year-on-year to 30.4 billion yuan. Total online lottery market is expected to reach 88.5 billion in 2014, or 22% of total lottery sales in China.
How would the suspension affect the Internet companies?
Online lottery contributes a very insignificant portion of Alibaba, Tencent and Baidu‘s (BIDU) revenue; in other words, the Big Three should not be affected. On the other hand, Netease and Qihoo 360 (QIHU) received 8.7% and 8.3% of their revenue from online lottery sales in the third-quarter.
Credit Suisse analyst Dick Wei and team reckon that the suspension - if it continues throughout 2015 – will affect 1.3%, 1% and 0.4% of Alibaba, Tencent and Baidu’s revenue respectively. Qihoo and Netease will see 4.9% and 5.9% of their revenues vanished.
But impact on the actual bottom-line may well be smaller, because the marketing expenses for this fast-growing category are quite high and therefore net margins of the online lottery businesses are low, noted Morgan Stanley‘s Robert Lin and team. Chinese Internet companies like to burn cash to land grab hot new fields.
it can be seen that everyone realized the article was libelous, especially as it couldn't be confirmed by Qihoo's rivals (which they certainly would have done).
But what is more concerning occurred today:
(Source: http://blogs.barrons.com/asiastocks...s-online-lottery-sales-affects-netease-qihoo/
China suspended online lottery sales starting March 1. Sina’s tech site reported that 38 Chinese Internet platforms, including Alibaba Group (BABA), Tencent Holdings (0700.HK/TCEHY) and Netease (NTES), have suspended online lottery sales in the past weekend.
Online lottery market was growing fast. According to Analysys, a market research firm, the total gross merchandize volume of online lottery in the third-quarter last year jumped 43% year-on-year to 30.4 billion yuan. Total online lottery market is expected to reach 88.5 billion in 2014, or 22% of total lottery sales in China.
How would the suspension affect the Internet companies?
Online lottery contributes a very insignificant portion of Alibaba, Tencent and Baidu‘s (BIDU) revenue; in other words, the Big Three should not be affected. On the other hand, Netease and Qihoo 360 (QIHU) received 8.7% and 8.3% of their revenue from online lottery sales in the third-quarter.
Credit Suisse analyst Dick Wei and team reckon that the suspension - if it continues throughout 2015 – will affect 1.3%, 1% and 0.4% of Alibaba, Tencent and Baidu’s revenue respectively. Qihoo and Netease will see 4.9% and 5.9% of their revenues vanished.
But impact on the actual bottom-line may well be smaller, because the marketing expenses for this fast-growing category are quite high and therefore net margins of the online lottery businesses are low, noted Morgan Stanley‘s Robert Lin and team. Chinese Internet companies like to burn cash to land grab hot new fields.
- Apr 13, 2013
- 3,151
Qihoo postponed earnings from 3/5 to 3/9, and the results just came out. Earnings growth is just fine, so my initial concerns were thankfully unwarranted.
From : http://blogs.barrons.com/asiastocks...-strong-q1-revenue/?mod=yahoobarrons&ru=yahoo
Qihoo 360 (QIHU) reported better-than-expected fourth-quarter earnings.
Revenue at Qihoo came in at $431.2 million, up 94.6% from a year ago, beating the company’s own guidance of $410-415 million and 3.6% above consensus estimate of $416.3 million. Qihoo reported earnings per share of $0.58, 4.5% higher than expected $0.55.
Search revenue and mobile game revenue drove the top-line growth. Search revenue increased 189% from a year ago to $109 million, now constituting a quarter of Qihoo’s total sales. Mobile game revenue jumped 211% year-on-year to $59 million.
Qihoo’s operating margin improved as its sales grew. Non-GAAP operating margin expanded from 25% in the third quarter to 31% in the fourth quarter as sales & marketing as well as general & administrative expenses fell.
Qihoo now expects revenue in the first quarter to grow by 41-43% from a year ago to $375-380 million, better than the $375.5 million expected by the street.
Shares of Qihoo jumped 5.8% in after-hours trading.
From : http://blogs.barrons.com/asiastocks...-strong-q1-revenue/?mod=yahoobarrons&ru=yahoo
Qihoo 360 (QIHU) reported better-than-expected fourth-quarter earnings.
Revenue at Qihoo came in at $431.2 million, up 94.6% from a year ago, beating the company’s own guidance of $410-415 million and 3.6% above consensus estimate of $416.3 million. Qihoo reported earnings per share of $0.58, 4.5% higher than expected $0.55.
Search revenue and mobile game revenue drove the top-line growth. Search revenue increased 189% from a year ago to $109 million, now constituting a quarter of Qihoo’s total sales. Mobile game revenue jumped 211% year-on-year to $59 million.
Qihoo’s operating margin improved as its sales grew. Non-GAAP operating margin expanded from 25% in the third quarter to 31% in the fourth quarter as sales & marketing as well as general & administrative expenses fell.
Qihoo now expects revenue in the first quarter to grow by 41-43% from a year ago to $375-380 million, better than the $375.5 million expected by the street.
Shares of Qihoo jumped 5.8% in after-hours trading.
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