Zacks Investment Research Report released recently

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

We raised the Qihoo 360 stock rating to "strong buy" because Qihoo 360 's financial performance in the third quarter exceeded expectations, earning 35 cents a share, exceeding the Zacks analyst's average forecast of 26 cents.

Qihoo 360 executives say the company continues to focus on Internet business and ongoing product innovation, which has been the company's main growth driver so far. Management expects these measures to bring a first-tier PC and mobile internet platform to the Chinese market in the near future.

Qihoo 360 's third-quarter revenue was $187.7 million, up 124% from 84 million dollars in the same period last year, and 151.7 million from the previous quarter's 24% dollar growth. Qihoo 360 's revenue growth was mainly due to continued growth momentum in its online advertising and internet value-added services.

It is not easy to get a foothold in a market dominated by a strong rival like Baidu (Nasdaq:bidu). Baidu has dominated the Chinese search market, and Qihoo 360 will find it hard to occupy a significant share of the market.

But it is encouraging that Qihoo 360 has made good progress in the search for commercialization, because, on the whole, other companies that will enter the market in the future are struggling to provide attractive products to attract a large number of advertisers. So the success of Qihoo 360 in commercial convenience means that the company's assets are valuable to advertisers, and that bodes well for future growth.