Why Is Sohu.Com Stock Sliding Today?
Portfolio Pulse from Anusuya Lahiri
Sohu.com Limited (NASDAQ: SOHU) reported a 12% Y/Y revenue decline to $141.36 million for Q4 2023, with a smaller-than-expected adjusted loss per ADS of 32 cents. Brand advertising and online game revenues fell by 30% and 5% Y/Y, respectively. The company announced an increase in its share repurchase program from $80 million to $150 million. Sohu forecasts a decrease in brand advertising and online game revenues for Q1 2024, alongside an estimated adjusted net loss of $23 million to $33 million. SOHU shares dropped 2.40% in premarket trading.
March 04, 2024 | 1:08 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Sohu.com reported a 12% Y/Y revenue decline and a smaller-than-expected adjusted loss per ADS. The company increased its share repurchase program and provided a negative outlook for Q1 2024.
The reported revenue decline and negative outlook for the next quarter are likely to negatively impact investor sentiment in the short term, despite the smaller-than-expected loss and increased share repurchase program.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Sohu.com through the SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX), which gained 6-14% last month.
EWX's investment in Sohu.com is part of its broader emerging markets small cap strategy, which may dilute the direct impact of Sohu's financial performance on the ETF's price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Sohu.com through the Invesco Golden Dragon China ETF (NASDAQ: PGJ), which gained 6-14% last month.
While PGJ provides exposure to Sohu.com, the ETF's broader diversification across Chinese internet companies may mitigate the direct impact of Sohu's performance on the ETF's overall price movement.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50