Qihoo 360: On The Fast Lane To Growth

Qihoo 360 (QIHU), provider of online services and consisting of advertising services, announced its Q2 2013 results yesterday morning. The company reported a record quarter and its search service so.com seems to be giving Baidu (BIDU) a run for its money as the Chinese internet search industry becomes more competitive.

Qihoo 360 reported a 108% revenue increase accompanied by an earnings jump of 135% on a YoY basis.  While the company is slowly but steadily pushing its cause in the search market, the company holds a competitive edge over rivals Baidu and Sina Corp (SINA) due to its presence in the online gaming space. The company reported close to 40% of its revenues from mobile services, a segment which is experiencing a huge growth in China. As per the company statement, this segment will see increased focus in order to drive future growth at the company. The Qihoo stock price closed 7.75% higher in the regular trading session yesterday following the earnings announcement.

Qihoo stock price Vs Baidu stock price

Qihoo stock Vs Baidu stock
Source: Qihoo stock price Vs Baidu stock price by Amigobulls

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Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

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Comments on this article and QIHU stock

WW Evans
The stock seems very expensive given a trailing P/E of 250x. Although, I believe Qihoo would be able to cope up with a long-term PEG rate of 1x, the extra-ordinary growth rate looks a bit scary as of today.
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