Zacks Sohu Stock rating to "strong sell"

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Beijing Time September 9 Evening News, the U.S. Investment Research Institute Zacks recently released an investment report, the Sohu Stock (Nasdaq:sohu) rating to "strong sell" (fervent Sell).

The following is a summary of the contents of the report:

Sohu Second-quarter results exceeded our expectations, revenue for 338.9 million U.S. dollars, the year-on-year growth of 18.8%, the chain growth of 10.2%. Diluted earnings per share of 56 cents, fell 26.8% year-on-year, the chain fell 11.4%.

Revenue growth has largely benefited from the strong performance of online advertising and network gaming, but higher operating costs have weighed on overall profitability.

There have been reports that Sohu is planning to sell Sogou search business to Qihoo, but the talks broke down in mid-August.

Recently, Qihoo sold 550 million dollars by selling bonds. The funds may be used for mergers and acquisitions, although Qihoo has denied the intent, but in the short term this uncertainty will continue to envelop Sohu.

In the past 60 days, we have adjusted for the third quarter of Sohu earnings per share has been reduced by 38.2% to 42 cents, for the entire 2013 fiscal year's diluted earnings expected to be reduced by 10.9% to 2.30 U.S. dollars for the fiscal year 2014 per share of diluted earnings forecast cut 11.1% to 3.28 U.S. dollars.