What's Going On With Chinese Internet Company Sohu Stock After Q1 Print?
Portfolio Pulse from Anusuya Lahiri
Sohu.com Limited (NASDAQ: SOHU) reported a 14% YoY revenue decline for Q1 2024, with an adjusted loss per ADS of $(0.65), missing analyst estimates. Brand advertising and online game revenues also fell. Despite this, the company saw improvements in gross margin and user growth in its Changyou games. Sohu expects mixed results for Q2 2024, with a decline in advertising revenue but growth in online game revenue. The stock has gained 22% YTD but traded slightly lower recently.
May 20, 2024 | 1:55 pm
News sentiment analysis
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NEGATIVE IMPACT
SPDR S&P Emerging Markets Small Cap ETF, which includes exposure to Sohu, may see minor negative impact due to Sohu's disappointing earnings report.
As EWX includes exposure to Sohu, the negative earnings report from Sohu could slightly impact the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Invesco Golden Dragon China ETF, which includes exposure to Sohu, may see minor negative impact due to Sohu's disappointing earnings report.
As PGJ includes exposure to Sohu, the negative earnings report from Sohu could slightly impact the ETF's performance.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Sohu.com Limited reported a 14% YoY revenue decline and an adjusted loss per ADS of $(0.65), missing analyst estimates. Despite improvements in gross margin and user growth, the stock traded slightly lower.
The revenue decline and missed earnings estimates are likely to negatively impact investor sentiment in the short term, despite some positive aspects like improved gross margin and user growth.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100