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Stock Market & Financial Investment News

News Breaks
August 25, 2014
11:26 EDTQIHU, BIDUQihoo 360 falls despite better-than-forecast Q2 results, Q3 revenue guidance
Shares of Chinese internet and software company Qihoo 360 Technology (QIHU) are falling despite reporting second quarter results that beat analysts' estimates. The company also provided third quarter revenue guidance that exceeded estimates. WHAT'S NEW: Qihoo 360 reported Q2 adjusted earnings per share of 50c on revenue of $317.9M, which surpassed analysts' consensus estimates of 46c and $309.38M, respectively. For the quarter, operating income was $43.9M compared to $36.6M a year ago and $39.6M in the first quarter. Non-GAAP operating margin was 21.9% in Q2, compared to 36% in the year-ago period and 14.9% in Q1. The company said the sequential decline in non-GAAP operating margin was primairly due to increased marketing and promotional expenses, personnel-related costs and bandwidth and equipment depreciation expenses. Looking ahead, Qihoo 360 forecast Q3 revenue of $360M-$365M, which is slightly higher than analysts' consensus estimates of $357.39M. WHAT'S NOTABLE: Chairman and Chief Executive Officer Hongyi Zhou commented that the company is in an "excellent position" to grow its share of China's search market in both PC and mobile traffic and revenue. The company plans to make "significant" investments in the coming quarters to strengthen its brand and market position, and to improve our products and technology, particularly in mobile Internet-related areas. The executive noted that the company's share of Internet search traffic recently reached over 30%, citing third-party data, achieving a company target fourth months ahead of schedule. ANALYST OPINION: Jefferies defended Qihoo 360 shares following the company's Q2 results. Stifel analyst George Askew feels that Qihoo 360's Q2 revenue and operating margin results were "very good" and believes that many factors, including its 30% search query share, will help it sustain its search revenue growth. The firm maintains $168 price target and Buy rating. Bank of America analyst Eddie Leung said that he expects Qihoo 360's margins to get better gradually in the second half of the year since the company is looking to control expenses and realize synergies. He anticipates search to increase at a fast rate to make up 36% of total sales in FY16. Leung believes this should particularly offset the decline in game revenues this past quarter. Leung lowered his price target on Qihoo 360 to $121 from $123. PRICE ACTION: During late-morning trading, shares of Qihoo fell $6.62 or 6.51%, to $95.13. OTHERS TO WATCH: Chinese search market leader Baidu (BIDU) rose nearly 1.7% to $217.77.
News For QIHU;BIDU From The Last 14 Days
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June 30, 2015
06:55 EDTBIDUBaidu to invest roughly $3.2B in offline-to-online unit, TechCrunch reports
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June 29, 2015
16:40 EDTQIHUConsortium outlines proposal for going-private transaction with Qihoo 360
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05:49 EDTQIHUStocks with implied volatility movement; ZTS QIHU
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June 26, 2015
06:07 EDTQIHUStocks with implied volatility below IV index mean; AMBA QIHU
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June 23, 2015
10:30 EDTQIHUOptions with decreasing implied volatility
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June 22, 2015
10:21 EDTQIHUOptions with decreasing implied volatility
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06:09 EDTBIDUHK opens door to Alibaba and others to to return 'home', Financial Times says
Hong Kong's stock exchange has opened the door to Alibaba (BABA) listing on its home market, reports the Financial Times. The xchange said it would re-examine its current bar on China-based companies having a secondary listing of their shares in the city. The move could permit groups like Alibaba, Baidu (BIDU), and JD.com (JD) to return "home" via secondary listings." Reference Link
06:02 EDTQIHUStocks with implied volatility below IV index mean; QIHU LULU
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