Shares of China’s Qihoo 360 Technology (QIHU), which makes popular Internet software,extended its 3-day run, rising another 13% to almost $24 as analysts raised price targets and offered an upbeat view on the company’s earnings report and conference call late yesterday. The company’s initial efforts to take on Google’s search service in China contributed to the investor reaction.
Jefferies analyst Cynthia Meng raised her price target to $35 from $23.
ThinkEquity analyst Henry Guo said the company’s second-quarter report was solid and characterized the Chinese firm’s third quarter guidance as conservative.
“We are impressed by the strong debut of QIHU’s search and believe QIHU has significant opportunity in China’s large search market. However, we don’t expect any meaningful search revenue contribution until 2H13 as the sales team ramp should take time. We believe QIHU is well-positioned and see significant monetization potential going forward,” Guo said, reiterating his buy rating.
The positives from the earnings report noted by Guo: A better-than-expected search debut, solid advertising despite the weaker economy, strong web games revenue and user metrics.
Just look at that exploding volume.. 13M shares... I suspect at least 50% was short-covering.
As for R&D:: They are a technology company. Why would R&D be a "negative"?? Either you invest in R&D, release new products, or become obsolete. Just ask HP what they are doing.... Not a heck of anything... Today was a huge day, not only did it hold, but closed strong into the close. Expect a take out of $26 this week.. Shorts are toast.. WAHLEEEEE
The same Cynthia Meng who can't differentiate between "1" and "4" ?
Cynthia Meng - Jefferies
Thank you. Thank you for taking my question. I had one question on the mobile strategy. Can management give any updates on Qihoo's mobile services? And what is your vision for monetization of -- future monetization of mobile internet? Would that first come from mobile search or mobile games? And related to games, does Qihoo have any plans to do client-based games since you are cooperating with Giant? Thank you.