Investors found out this week that Chinese Internet stocks are no more alike than their U.S. counterparts.
Just days after Sina.comsoared 25% after beating estimates, Sohu.comtumbled 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 Onlineslipped 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.
Gatewayclimbed more than 8% after beating earnings estimates.
DoubleClickdropped 8% on a warning.
McAfee, Micros, Open Text, Ingram Micro, SafeNet, S1, Sanminaand WebSideStoryrose on their results.
LookSmart, Ascential, NetGear, Radisys, GSI Lumonics, Adaptecand Brightpointfell on their reports.
AtRoadsoared 40% on a deal with SBC.