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Sohu.com (SOHU)
NASDAQ:SOHU
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Sohu (SOHU) AI Stock Analysis

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SOHU

Sohu

(NASDAQ:SOHU)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
$14.50
▲(1.68% Upside)
Sohu's overall stock score reflects significant financial challenges, including declining revenues and persistent losses. Technical indicators suggest bearish momentum, while valuation metrics indicate potential undervaluation. The earnings call provided mixed insights, with some positive developments in user engagement but ongoing revenue and profitability issues.
Positive Factors
Strong Gross Profit Margin
A strong gross profit margin indicates efficient cost management and the ability to maintain profitability in core operations, providing a buffer against revenue fluctuations.
Low Leverage
Low leverage enhances financial stability, reducing risk and interest expenses, and providing flexibility for future investments or downturns.
User Engagement Initiatives
Enhanced user engagement through targeted events can strengthen brand loyalty and expand the user base, supporting long-term revenue growth.
Negative Factors
Declining Revenue
A significant decline in revenue indicates challenges in market competitiveness and demand, impacting long-term growth prospects and financial health.
Persistent Net Losses
Ongoing net losses highlight operational inefficiencies and the inability to convert revenue into profit, posing a risk to sustainable business operations.
Negative Cash Flow Trends
Declining cash flow limits the company's ability to reinvest in growth opportunities and manage financial obligations, threatening long-term viability.

Sohu (SOHU) vs. SPDR S&P 500 ETF (SPY)

Sohu Business Overview & Revenue Model

Company DescriptionSohu (SOHU) is a leading Chinese internet company that provides a diverse range of online services and products, spanning various sectors including online media, search engines, online games, and digital advertising. Founded in 1996, Sohu operates several platforms, including its flagship portal Sohu.com, which offers news, entertainment, and lifestyle content. The company also has a significant presence in the online gaming industry through its subsidiary, Sogou, which focuses on search and social media services.
How the Company Makes MoneySohu generates revenue through multiple channels, primarily through online advertising, which includes display ads, search ads, and video advertising on its various platforms. Additionally, the company earns revenue from its online gaming segment, where it develops and publishes games, both in-house and through partnerships with other developers. Sohu also generates income from subscriptions and premium services offered on its platforms. Significant partnerships with other technology firms and advertisers enhance its revenue potential, enabling Sohu to leverage its user base for targeted advertising and promotional campaigns.

Sohu Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. While there were achievements in online game revenues and user engagement through events, significant challenges remain with overall revenue decline, net losses, and weak advertising sentiment. The company is focused on building user base and brand influence amidst a tough economic environment.
Q2-2025 Updates
Positive Updates
Online Game Revenue Performance
Online game revenues reached the high end of guidance, achieving $106 million despite market challenges.
User Engagement and Brand Influence
Increased user engagement and brand influence through differentiated events, especially in K-pop and Hanfu verticals, which became major attractions.
Share Repurchase Program
Sohu has repurchased 6.6 million ADS for an aggregate cost of approximately $83 million, more than half of the total commitment.
Negative Updates
Overall Revenue Decline
Total revenues were $126 million, down 27% year-over-year and 7% quarter-over-quarter.
Marketing Services Revenue Decrease
Marketing services revenues were $16 million, down 21% year-over-year, despite a 14% quarter-over-quarter increase.
Continued Net Loss
GAAP net loss attributable to Sohu.com Limited was $20 million, compared to a net loss of $38 million in the same quarter last year.
Weak Advertising Sentiment
Advertising revenue faces challenges due to macroeconomic uncertainties and reduced consumer spending.
Company Guidance
In the second quarter of 2025, Sohu reported total revenues of $126 million, reflecting a decrease of 27% year-over-year and a 7% decline quarter-over-quarter. Marketing services revenues reached $16 million, marking a 21% year-over-year decline but a 14% increase from the previous quarter. Online game revenues were $106 million, down 28% year-over-year and 10% quarter-over-quarter. The company recorded a GAAP net loss of $20 million, an improvement from a $38 million loss in the same quarter last year, but a significant drop from a $182 million net income in the first quarter of 2025. Non-GAAP net loss was also $20 million, compared to a $34 million loss a year ago and a $16 million loss in the previous quarter. Looking ahead to the third quarter, Sohu anticipates marketing services revenues to range between $40 million and $50 million, while online game revenues are expected to be between $107 million and $117 million. The company forecasts both GAAP and non-GAAP net loss to be between $25 million and $35 million. CEO Dr. Charles Zhang highlighted efforts to enhance user engagement through events that align with shared interests, while CFO Joanna Lv discussed the ongoing share repurchase program, with $83 million spent on 6.6 million ADS by July 31, 2025.

Sohu Financial Statement Overview

Summary
Sohu faces financial challenges with declining revenues and persistent net losses, impacting profitability and shareholder returns. Despite a strong equity position with low leverage, negative cash flows and returns on equity present significant hurdles.
Income Statement
45
Neutral
Sohu has faced declining revenue with a decrease from $600.7M to $598.4M in 2024, representing a slight contraction. The company struggles with profitability, as evidenced by a consistent negative net income and EBIT over recent years. The gross profit margin remains strong at 72.29% for 2024, but the net profit margin is negative at -16.76%, indicating inefficiencies and high operational costs.
Balance Sheet
60
Neutral
Sohu's balance sheet shows a relatively strong equity position, with a debt-to-equity ratio of 0.04, suggesting low leverage. The equity ratio stands at 53.16%, indicating a solid equity buffer. However, the return on equity is negative at -10.87% for 2024, highlighting challenges in generating returns for shareholders.
Cash Flow
50
Neutral
The cash flow statement reveals a declining trend in free cash flow, with a fall from -$43.98M in 2023 to -$67.94M in 2024. Operating cash flow also turned negative, indicating cash flow challenges. The operating cash flow to net income ratio is 0.48, reflecting issues in converting profits into cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue549.03M598.40M600.67M733.87M835.58M749.89M
Gross Profit410.85M432.57M454.92M542.30M630.90M532.45M
EBITDA-60.62M-76.97M-57.06M30.43M133.43M114.72M
Net Income124.44M-100.27M-30.38M-17.34M927.73M-86.11M
Balance Sheet
Total Assets1.68B1.73B1.88B1.98B2.25B2.82B
Cash, Cash Equivalents and Short-Term Investments826.15M904.42M960.27M1.17B1.40B317.80M
Total Debt0.0035.85M35.31M36.16M36.12M442.78M
Total Liabilities614.44M811.98M822.82M867.07M953.60M1.79B
Stockholders Equity1.06B922.34M1.06B1.11B1.29B347.37M
Cash Flow
Free Cash Flow0.00-67.94M-43.98M8.40M-104.48M61.43M
Operating Cash Flow0.00-48.02M-25.57M32.24M-62.28M95.21M
Investing Cash Flow0.00-113.36M-291.67M-232.79M516.73M419.77M
Financing Cash Flow0.00-40.88M-6.56M-82.14M-434.10M93.59M

Sohu Technical Analysis

Technical Analysis Sentiment
Negative
Last Price14.26
Price Trends
50DMA
15.42
Negative
100DMA
14.34
Negative
200DMA
13.24
Positive
Market Momentum
MACD
-0.34
Positive
RSI
36.80
Neutral
STOCH
31.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOHU, the sentiment is Negative. The current price of 14.26 is below the 20-day moving average (MA) of 14.98, below the 50-day MA of 15.42, and above the 200-day MA of 13.24, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 31.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOHU.

Sohu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$93.00B20.7324.36%1.90%2.86%19.96%
75
Outperform
$436.07M4.1212.05%0.51%-8.46%
72
Outperform
$403.67M10.3814.98%
68
Neutral
$11.00B379.481.58%22.89%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
51
Neutral
$439.11M3.4212.12%-8.50%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOHU
Sohu
14.26
0.25
1.78%
NTES
NetEase
151.86
73.91
94.82%
NCTY
The9
8.96
0.26
2.99%
BILI
Bilibili
29.16
8.77
43.01%
DDI
Doubledown Interactive Co
8.83
-5.66
-39.06%
GDEV
Nexters
22.10
-9.32
-29.66%

Sohu Corporate Events

Sohu.com Limited Announces Election of Directors and Auditor Ratification
Sep 10, 2025

On September 10, 2025, Sohu.com Limited held its annual general meeting of shareholders in Beijing, China. During the meeting, three nominees, Mr. Charles Huang, Dr. Dave Qi, and Mr. Shi Wang, were elected as Class II Directors, each receiving a plurality of votes. Additionally, the shareholders ratified the appointment of PricewaterhouseCoopers Zhong Tian LLP as the company’s independent auditors for the fiscal year ending December 31, 2025. These decisions are expected to strengthen the company’s governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

Sohu.com Limited Announces 2025 Annual General Meeting
Aug 7, 2025

Sohu.com Limited announced that its 2025 Annual General Meeting of Shareholders will be held on September 10, 2025, in Beijing. The meeting will include the election of Class II Directors, Charles Huang, Dave Qi, and Shi Wang, and the ratification of PricewaterhouseCoopers Zhong Tian LLP as the company’s independent auditors for the fiscal year ending December 31, 2025. This meeting is significant for stakeholders as it involves key decisions regarding the company’s leadership and financial oversight.

Sohu Reports Q2 2025 Financial Results Amid Revenue Decline
Aug 4, 2025

On August 4, 2025, Sohu.com Limited announced its unaudited financial results for the second quarter ending June 30, 2025. The company reported total revenues of $126 million, marking a 27% decline year-over-year and a 7% decrease quarter-over-quarter. Despite a GAAP net loss of $20 million, the company saw improvements in marketing services revenues and maintained a strong gross margin. Sohu’s efforts in refining its media platform and optimizing its online games have helped consolidate its brand influence and capture monetization opportunities, although challenges remain with declining revenues.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025