Morgan Stanley released its investment report today to maintain the 360 equity (NYSE:QIHU) Overweight rating

Morgan Stanley today issued an investment report to maintain the "overweight" rating of Qihoo 360 shares (Nyse:qihu). Morgan Stanley expects 360 third-quarter revenue to rise 116% Year-on-year, with net profit up 136% per cent year-on-year.

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

November 25 Earnings: Qihoo 360 will be in the U.S. Eastern Time November 25 before the U.S. stock market opening (Beijing time November 25 late) released the third quarter of fiscal year 2013, and will be in the eastern time November 25 7:30 A.M. (Peking City 8:30) to hold a earnings conference call. The phone number for the conference call is: USA (free): +1 866-590-5622; International: +65 6723 9382; Hong Kong, China: +852-2521-4709; Password: 98160358.

Performance expectations: 1 We expect total revenue will reach 182 million U.S. dollars, the chain growth of 20%, year-on-year growth of 116%, and Qihoo 360 guidance expected to 181 million U.S. dollars to 183 million U.S. dollars. 2 We expect online advertising revenue will reach 110 million U.S. dollars, the chain growth of 21%, the year-on-year growth of 88%. 3 The Internet Value-added services business revenue will reach 72 million U.S. dollars, the chain growth of 18%, the year-on-year growth of 180%. Web game revenue will reach 61 million U.S. dollars, the chain growth of 25%, the year-on-year growth of 197%. 4 Operating profit will reach 35 million U.S. dollars, the chain fell 3%, up 190% year-on-year. Affected by higher sales and marketing spending, we expect operating margins to reach 20%, compared with 24% in the previous quarter and 15% for the same period last year. 5 Net profit will reach 30 million U.S. dollars, the chain fell 8%, the year-on-year growth of 136%. Each share of the US depository shares will reach $0.24 trillion, and the diluted earnings per share will reach $0.38, based on non-US GAAP.

Search market share: Based on page traffic (PV), Qihoo November Search market share of 21%, and Baidu 64%, Sogou for 11%. The share has exceeded the stated goal of reaching 20% by the end of 2013.

Qihoo mobile App Store: "Plant vs. Zombie 2" has reached 10 million downloads in 36 hours after its mobile app store shelves, Qihoo said. With more than 50% downloads, the "Plant vs. Zombie 2" Download in the Qihoo App Store exceeds the number of telecom carrier channels and other app store downloads, such as 91 wireless and UC Web.

Valuation: We continue to maintain the "overweight" rating of Qihoo 360 stocks.