The Bulls are Charging on This Internet Stock
Investors Business Daily ranked the company number 21 on the IBD 50 list, which lists companies based on superior earnings, strong price performance, and leadership within industries.
The stock is 34-percent owned by institutional investors including banks like Morgan Stanley (NYSE:MS) and Credit Suisse (NYSE:CS), each with over 2 million shares. The banks added to their positions in the company at the end of September.
CHEAT SHEET Analysis: Is Qihoo Riding a Growing Trend?
The Internet and search space has huge amount of room to grow in China. Nearly 60 percent of China is still offline representing a massive opportunity. Search and a software-as-a-service ecosystem are not so much a trend as a proven model, and the Chinese search wars will quickly turn into the Chinese Internet ecosystem wars. Qihoo looks ready to throw down in that fight and investors know this.
The trend that Qihoo is surfing is not just a well-tested business model in a huge, growing economy, but the fact that more and more investors are recognizing Qihoo as a great opportunity. Today’s massive gains are a testament to this.
The company’s most recent earnings showed profits up 25 percent year over year and a 77-percent year-over-year increase in sales. Annual earnings for 2012 are expected to grow 45 percent and 46 percent in 2013.
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