Why Shares of Sohu.com Are Surging Today
Shares of Chinese web company Sohu.com (NASDAQ: SOHU) jumped Monday following a mixed second-quarter report. While Sohu missed bottom-line expectations, a revenue beat and strong guidance were enough to propel the stock 10% higher by 11:15 a.m.
Sohu reported second-quarter revenue of $461 million, up 10% year over year, and about $26 million higher than analysts' average estimate. This growth was driven by a 17% increase in search advertising revenue and a 23% increase in online game revenue, which more than offset a 24% decline in brand advertising revenue. Growth in mobile traffic and the launch of a new mobile game drove the growth in the first two categories, while weakness in video and real estate advertising drove the decline in the latter category.
Image source: Sohu.com.
Source: Fool.com
