Many trade by story. That made QIHU hot last year. QIHU's story was it had high share in mobile search. However, it turns out that the browser is not the entry point on mobile devices. That totally breaks the story.
Of course, the story was not true from the beginning. QIHU imposes its junk nuisances on users. Who ever had good user experience with its junk? When it comes to search, it is the data, information, and intelligence. QIHU is inferior in all these counts. No one would opt to using QIHU for search.
Then its earnings quality. QIHU's is low. It comprises of a big chunk of revenue from games. The valuation for game revenue is low, only a p/e of 10. Verify with NTES or CMGE.
So I do not think QIHU's stock could continue to support such a high p/e. Maybe a p/e of 15 is more appropriate. That would put the stock 30% below its current level.