Citigroup attributes the 10% drop last night in Youku.com shares to an article on DoNews.com that suggested user overlap could be high as 50% for the now-combined Youku and Tudou. The user-overlap estimate is well above the 18% cited by Youku’s Senior VP, Yu Zhou, at a recent conference, Citi points out. However, Citi thinks DoNews.com compared monthly data with weekly data, resulting in a wrong conclusion. The firm reiterates a Buy rating on Youku.com shares with a $36 price target.
America has no tolerance for wealthy people griping about their financial woes. But they have concerns too.