dcsimg
RealTime IT News

Sohu Drops On Warning

Investors found out this week that Chinese Internet stocks are no more alike than their U.S. counterparts.

Just days after Sina.com soared 25% after beating estimates, Sohu.com tumbled more than 13% after missing estimates and warning.

Sohu's third-quarter earnings of 21 cents a share missed estimates by a penny, and revenues of $25.9 million came in under $27.6 million forecasts. For the fourth quarter, Sohu said it sees earnings of 17-19 cents, below 23 cent estimates, and revenues of $23.8-24.8 million, also less than forecast.

The company cited weakness in its wireless business and an increase in operating costs.

"We are still in the build-up phase of a very promising but competitive market," CFO Carol Yu said in a statement. "We believe we are making the appropriate levels of investment to strengthen our brand and market presence and contribute to value for our shareholders in the long-term."

Also in the Chinese Internet space, TOM Online slipped after the company delayed its earnings report until Nov. 10.

Stocks were mixed Friday, as a weaker than expected third-quarter GDP reading was offset by better than expected consumer sentiment and Chicago manufacturing reports. The appearance of a bin Laden tape ahead of Tuesday's U.S. presidential election also weighed on stocks.

The Nasdaq slipped 1 to 1975, the S&P 500 gained 2 to 1130, and the Dow rose 22 to 10,027. Volume declined to 1.5 billion shares on the NYSE, and 1.66 billion on the Nasdaq. Advancers led 19-13 on the NYSE, while decliners held a slight edge on the Nasdaq. Upside volume was 61% on the NYSE, and 48% on the Nasdaq. New highs-new lows were 157-21 on the NYSE, and 126-43 on the Nasdaq.

Gateway climbed more than 8% after beating earnings estimates.

DoubleClick dropped 8% on a warning.

McAfee , Micros , Open Text , Ingram Micro , SafeNet , S1 , Sanmina and WebSideStory rose on their results.

LookSmart , Ascential , NetGear , Radisys , GSI Lumonics , Adaptec and Brightpoint fell on their reports.

AtRoad soared 40% on a deal with SBC .