Sohu.com Inc (NASDAQ:SOHU) stands out so high in China
Typically, computer services industry is prone to a massive amount of competition. However, some companies such as Sohu.com Inc (NASDAQ:SOHU) have managed to carve a niche for themselves and also dominated a competition-riddled
sub-sector. Sohu is a dominant in China. It is almost like a combined Chinese version of Facebook and Google.
This company is heavily-reliant on the
Chinese internet industry’s viability. It runs Sohu.com, the highly popular internet portal, social networking sites, numerous games as well as property information. It has undertaken various aggressive growth-strategies. These have the potential to either boost the firm’s revenue or put-off users. The paid search and paid online videos are two of the new strategies.
The revenue churner
The company has gained a lot of momentum over the past few years, in terms of generating revenue. Four years ago, its revenue was less than half of what it is today. Last year, the company total revenue was $1 billion. SOHU is diversifying at a rapid pace and in most likelihood, its revenue will keep on growing. SOHU services are extremely popular in the country. This is another strong indicator that the company is able to eke the most from every stream that it chooses to dip its fingers into. This is one sure-shot profitable way of investing the Chinese economy as well as in the computer-services market.
Sohu.com Inc (NASDAQ:SOHU) has forecasted that its revenue for the Q3 will be in the range of $358-$370 million which meets the average analyst estimate of $362 million. The company might associate itself with Qihoo 360 Technology Co. The latter is the 2nd largest search engine in China. In doing so, it will bulk up on the muscle it needs to compete with Baidu.com. At March end, Sohu’s market share accounted for 5.5% on the basis of its search enquiries.