Earnings are not bad.. grew 38% but their costs sky rocketed.. not necessarily in marketing push but hiring more personnel. This means that they are not spending on sales & marketing for that revenue but hiring more people to develop offline features for mobile.. didn't think they would spend so much on People and Content.
The ER was good. with out the Content costs... This could have been a blow out quarter :-(.. Yeap.. I will probably lose my shirt :-(
PCLN may take a big beating too..
time to load up. Good Luck!
Too much negative reaction last quarter based on a really slight miss in the quarter. They never missed going back a long time. and they are grwoing faster than GOOGLE but trading a much lower multiple.
You will likely see a move bigger than AMZN in BIDU
this is crazy...
lot of mobile trading in China.. Actually iphones are selling more than earlier..
Yeah, but this went up based on 77$ bid so they can take it to IPO with 65B valuation. If no IPO, they will drag the offer response.. eventually asking for a crazy number like 100... if no IPO QIHU will correct big time...
A safe exit for QIHU will be to ask for a much higher price like 90, so the CEO can back off or sit on it.. while the stock drifts towards 90's.. All this if Chinese market truly halts IPO's and chinese markets wont recover..
what ever the reason of halting IPO's it is not good news for QIHU offer. They wanted to go private so they can be listed with higher valuation in chinese market. If that is not happening..why would they go private...
The primary reason for the offer was to list as an IPO in chinese shanghai so QIHU can fetch 65B valuaiton. But the wrinkle is that China announced it may halt new IPO's because of falling stock prices. Now QIHU CEO may be wondering what will he do after the buy out if china doesn't allow him to list as IPO again? So they will hold on to this decision for a while to see if China market settles and if China will stop allowing IPO's.
The chances of this offer going through actually has reduced quite a bit once the chinese market slowed. Having said that. QIHU may want to give some time to see if the market recovers and the IPO's are actually allowed.