A highly recommended buy of this blog, SOHU reports 3Q earnings next Monday 10/16 BMO [before market open] so I felt it a good time to recap where I’ve been with this stock and where I expect it to go. When I think of SOHU I think China Google. Chinese internet but with exploding population and growth potential. I leave the earnings number crunching to those much more qualified and merely trade the chart but if you’d like to learn more about expectations, check your brokers website or sign up for a free account @ whispernumber.com. EPS estimates range from $0.82-1.00 with an average of 0.89
I just love this stock though and with 18% short interest, it’s as volatile as GOOG and performs right along with it. Just consider this GOOG chart reflecting its rise after its last earnings release. SOHU, MSFT and YHOO are overlaid to demonstrate how SOHU has performed right along w/GOOG [outperforming MSFT and YHOO] up until Google reported. SOHU has beat on all prior earnings since its IPO so a 10% pop would be expected unless they disappoint.
As a footnote, SOHU’s subsidiary which debuted its IPO this year, CYOU, also reports on Monday BMO with estimated EPS of $0.68-.70 or an average of $0.69. Could be a fun play as well with 11% short interest 😉