Slowing Chinese Economy Threatens Youku and Sohu
02 November 2011 - 11:16PM
Marketwired
Chinese internet stocks have struggled over the last month as
reports of a slowing Chinese economy has led to growth concerns for
tech companies. China's internet population was growing at a rate
of six million per month according to research conducted by the
consultancy McKinsey&Co earlier this year. The Bedford 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.bedfordreport.com/YOKU www.bedfordreport.com/SOHU
China's third-quarter gross domestic product was up 9.1% from a
year earlier, slowing from 9.5% growth in the second quarter and
9.7% growth in the first, China's National Bureau of Statistics
said. Growth fell short of the median 9.2% forecast of 14
economists surveyed by Dow Jones Newswires.
"If the GDP growth reading was 9.2% or 9.3%, the market may
think it's acceptable, but 9.1% looks worrisome, especially
compared to the second quarter's 9.5%," said Qian Qimin, an analyst
at brokerage Shenyin Wanguo.
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Despite posting 17 percent year-on-year revenue growth in the
third quarter, shares of Sohu were crushed following the
announcement as costs related to game launches and video offerings
continued to chip away at its margins. Profit was $45 million, or
$1.17 per share, in the three months ending Sept. 30, Sohu
announced.
Youku.com Inc. is an Internet television company in People's
Republic of China. Its Internet television platform enables
consumers to search, view and share video content quickly and
easily across multiple devices.
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