Qihoo 360 (QIHU) is an Overvalued Chinese Internet Dinosaur - Citron
Tweet
Share
E-mail
Get Alerts QIHU Hot Sheet
Join SI Premium – FREE
Shares of Qihoo 360 Technology Co. Ltd (Nasdaq: QIHU) are under heavy pressure Tuesday following a negative mention at Citron Research.
Citron is calling Qihoo 360 "the most overvalued and misunderstood Chinese Internet stock." They have set a $5 price target, which suggests 75 percent downside from Monday's close.
Citron said Qihoo 360 has a lot of the same characteristics as Sky-Mobi (NASDAQ: MOBI), a stock that dropped from $18, when they first discussed it, to below $3.
Both Sky-Mobi and Qihoo have "intentionally misrepresented their businesses to Wall St in the hope of sustaining exaggeratedly high market capitalizations." However, Citron says, both companies have their best days behind them.
While the company's anti-virus software-bundled browser has gained considerable market share in China over the years, revenues from selling anti-virus protection has dwindled to zero. The company has since moved to giving away its software and selling selling ads.
Citron calls Qihoo a "web 1.0 brand with a web 1.0 business model that is hoping (and claiming) to be moving into mobile, cloud computing, and search — all businesses in which they are years behind and have zero present-day market share."
You can read the full Citron report here
Citron is calling Qihoo 360 "the most overvalued and misunderstood Chinese Internet stock." They have set a $5 price target, which suggests 75 percent downside from Monday's close.
Citron said Qihoo 360 has a lot of the same characteristics as Sky-Mobi (NASDAQ: MOBI), a stock that dropped from $18, when they first discussed it, to below $3.
Both Sky-Mobi and Qihoo have "intentionally misrepresented their businesses to Wall St in the hope of sustaining exaggeratedly high market capitalizations." However, Citron says, both companies have their best days behind them.
While the company's anti-virus software-bundled browser has gained considerable market share in China over the years, revenues from selling anti-virus protection has dwindled to zero. The company has since moved to giving away its software and selling selling ads.
Citron calls Qihoo a "web 1.0 brand with a web 1.0 business model that is hoping (and claiming) to be moving into mobile, cloud computing, and search — all businesses in which they are years behind and have zero present-day market share."
You can read the full Citron report here
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tenable Mentioned as short at Bear Cave
- UBS sees gold rising to $5,000/oz by first half of 2027
- SpaceX struggles to recover Starship from Indian Ocean
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
Citron ResearchSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
