Qihoo (QIHU) CFO Details Plans for Search Growth and Monetization
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Price: $43.06 +0.65%
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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During a recent tour in China, analysts at Jefferies hosted a meeting with Mr. Alex Xu, Qihoo’s (NYSE: QIHU) Chief Financial Officer. Qihoo aims to become a major player in search market, and current has 10 percent of traffic market share, which the company says is just a start.
“Qihoo expects search monetization starting 4Q12, using a mix of Google China’s ads system and Qihu's own,” said analyst Cynthia Meng.
Management plans to gradually expand its market share, instead of aggressively pushing share up short term. The majority of Qihu's browser users stay on 360 search as default, as Qihoo can meet 80-90% of regular search needs. For the long tail results, 360 search is not as comprehensive as Baidu, notes a report by Jeffereis, but Qihoo is working to narrow the gap by collecting user feedback on search results on its browsers.
“Management indicated that the fast way to monetize search is to cooperate with Google, leveraging Google China’s sales resources and ads system,” said Meng. “Qihoo will also develop its own sales team and ads agencies, but it will take more time. Qihoo will start search monetization from 4Q12, with Google China’s ads system and its own system coexisting for a period of time.
Jefferies has a Buy rating on Qihoo and a price target of $35.
For an analyst ratings summary and ratings history on Qihoo 360 Technology click here. For more ratings news on Qihoo 360 Technology click here.
Shares of Qihoo 360 Technology closed at $25.20 yesterday, with a 52 week range of $13.71-$26.35.
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“Qihoo expects search monetization starting 4Q12, using a mix of Google China’s ads system and Qihu's own,” said analyst Cynthia Meng.
Management plans to gradually expand its market share, instead of aggressively pushing share up short term. The majority of Qihu's browser users stay on 360 search as default, as Qihoo can meet 80-90% of regular search needs. For the long tail results, 360 search is not as comprehensive as Baidu, notes a report by Jeffereis, but Qihoo is working to narrow the gap by collecting user feedback on search results on its browsers.
“Management indicated that the fast way to monetize search is to cooperate with Google, leveraging Google China’s sales resources and ads system,” said Meng. “Qihoo will also develop its own sales team and ads agencies, but it will take more time. Qihoo will start search monetization from 4Q12, with Google China’s ads system and its own system coexisting for a period of time.
Jefferies has a Buy rating on Qihoo and a price target of $35.
For an analyst ratings summary and ratings history on Qihoo 360 Technology click here. For more ratings news on Qihoo 360 Technology click here.
Shares of Qihoo 360 Technology closed at $25.20 yesterday, with a 52 week range of $13.71-$26.35.
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