High Costs at Youku and Sohu Pave Way for Explosive Growth
November 15 2011 - 7:16AM
Marketwired
Chinese internet firms have shown explosive growth in recent
quarters. While revenues throughout the sector have skyrocketed,
higher costs have crimped margins for many Chinese Tech
heavyweights. The hope is that rising expenses will pay off in the
future, in a similar manner to American rival Google. The Paragon
Report examines the outlook for companies in China's Internet
Sector and provides stock research on Youku.com, Inc. (NYSE: YOKU)
and Sohu.com, Inc. (NASDAQ: SOHU). Access to the full company
reports can be found at:
www.paragonreport.com/YOKU www.paragonreport.com/SOHU
Chinese internet stocks were being crushed over the summer as
more government regulations were being considered. As The Wall
Street Journal reported, "China's government is considering new
regulations to govern a corporate structure that has enabled a wave
of Chinese firms to list overseas by circumventing rules against
foreign investment in sectors like the Internet."
Moreover, Michael Schuman of Time.com reports that several
searches are impossible, emails are monitored, many web pages
simply won't open, and others open so slowly that only an extremely
patient or determined will endure the wait.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on China's Internet Sector register with us
free at www.paragonreport.com and get exclusive access to our
numerous stock reports and industry newsletters.
Despite all the hypothetical headwinds, Chinese internet firms
continue to post amazing revenue growth. Sohu posted 17 percent
year-on-year revenue growth in the third quarter. Profit was $45
million, or $1.17 per share, in the three months ending Sept. 30,
Sohu announced. Like many of its industry peers, the company
reported higher costs -- in Sohu's case related to game launches
and video offerings.
Youku.com, China's leading internet television company, will
report its third quarter 2011 financial results tomorrow after the
close of the US markets. Last week Youku launched its new "Youku
Presents" initiative to promote young filmmakers with the premiere
of "Operation Thanksgiving."
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer
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