Sohu.com (SOHU)

• Article
• Discussion
• Edit
• History
• Bookmark

Bulls: Reasons To Buy Feeling Bullish? Be the first to explain why this would make a good investment Bears: Reasons To Sell Feeling Bearish? Be the first to explain why this would make a poor investment Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

Top Contributors Paul Cheung www.zacks.com Related Articles Impact of Internet Advertising U.S. Housing Market

Sohu.com, Inc., (SOHU), is a leading online brand in China. Services provided by the company include news, search, e-mail, games and wireless messaging. The company offer services through one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of the mass portal and online media destination sohu.com interactive search engine sogou.com online mapping service provider go2map.com online alumni club chinaren.com games information portal 17173.com real estate website focus.cn and wireless value-added services provider goodfeel.com.cn. SOHU markets its products and services to clients primarily in China. The company has approximately 1,000 employees. SOHU competes with various Internet service providers, including Web directories, search engines, content sites, and sites maintained by the government and educational institutions. In the first three quarters of 2007, the company derived about 69% of its revenue from online advertising. Wireless business and online games contributed 31% of the company's revenue.

SOHU reported blockbuster financial results for the third quarter of 2007. Both the company's revenue and earnings exceeded market expectations because of strong growth in online game and advertising business. Gross margin of 66.7% in the third quarter of 2007 increased from 60.6% in the previous quarter. Brand advertising revenues were US$29.8 million, up 42% year-over-year and 12% quarter-over-quarter. Online games revenues were US$12.7 million, up 473% year-over-year and 232% quarter-over-quarter.

Although SOHU faces fierce competition from different fields including brand advertising, online game, wireless value added services, and search, the company manages to be a main player in almost each field. With the Beijing 2008 Olympics sponsorship, SOHU has a well-known brand and rich website resources to leverage the great opportunities for online business in China. Overall, we think the current stock price is overvalued. Therefore, we are upgrading the stock from Hold to Buy on SOHU shares.

 Sohu.com

	Select All  |  Select None Metrics Advertising Revenue Revenue from Company Websites Revenue from Company Network Websites Licensing Revenue Licensing Revenue Growth Research & Development Expenses as a Percentage of Total Revenue Increase in Paid Clicks Monthly Revenue per Paying User Revenue by Geography - US Revenue by Geography - UK Revenue by Geography - International Operating Income Revenue from Subscriptions Advertising Revenue Growth Increase in Page Views Net Income Cancel

	Select All  |  Select None Companies Google (GOOG) Yahoo! (YHOO) PlanetOut (LGBT) Microsoft (MSFT) EBay (EBAY) InfoSpace (INSP) LookSmart (LOOK) 24/7 Real Media (TFSM) Local.com (LOCM) Sohu.com (SOHU) TheStreet.com (TSCM) Time Warner (TWX) IAC - InterActiveCorp (IACI) Cancel

Choose View:20042005200620072008Most Recent

2004 Data

2005 Data

2006 Data

2007 Data

2008 Data

Most Recent Data Available

+ Select more metrics (16)

Company	Data From	Revenue from Subscriptions	Advertising Revenue Growth	Increase in Page Views	Net Income
InfoSpace (INSP)	2007	Add	(8.62%)	Add	$14.6M
Local.com (LOCM)	2007	Add	51.4%	Add	($18.2M)
LookSmart (LOOK)	2006	Add	17.7%	Add	($13.7M)
Sohu.com (SOHU)	2007	Add	29.9%	Add	$34.9M
TheStreet.com (TSCM)	2006	$35.5M	62.2%	78.9%	$12.9M

+ Select more companies (13)

See all Internet Advertising Industry WikiData

[edit] References

1. ↑ INSP , 2007 10-K, Item 6, Pg 27
2. ↑ INSP , 2007 10-K, Item 8, Pg 53
3. ↑ ^{3.0 3.1} 2007 LOCM, 10-K, Item 6, page 18
4. ↑ LOOK , 2006 10-k, Item 6, Pg 21
5. ↑ LOOK , 2006 10-k, Item 8, Pg 40
6. ↑ ^{6.0 6.1} 2007 SOHU, 10-K, Item 6, page 42
7. ↑ ^{7.0 7.1 7.2} 2006 TSCM, 10-K, Item 6, Page 20
8. ↑ 2006 TSCM, 10-K, Item 1, Page 8