Sohu Misses on Revenue, Lowers Guidance; Shares Tumble 24%
Sohu.com was among the biggest losers on Wall Street intraday Monday, reporting increased losses and lower revenue for the second quarter.
Sohu.com Ltd.'s (Nasdaq: SOHU) stock plummeted 24 percent to $9.29 per American depositary share by midday Monday on lower-than-expected revenue and worsened trade tensions between China and the United States.
The Beijing-based company, which operates businesses in online media, video, search and gaming, said in a statement today that its revenue in the second quarter reached $475 million, down 2 percent year-over-year. The company also reported a net loss of $53 million, or $1.35 per American depositary share, compared with $48 million, or $1.23 per ADS, in the second quarter of 2018.
"Under the current challenging macroeconomic environment, our total revenues stayed largely in-line with our prior guidance," Charles Zhang, the executive officer of Sohu.com said in the official statement today.
Sohu.com controls the search engine Sogou Inc. (NYSE: SOGO) and the online gaming company Changyou.com Ltd. (Nasdaq: CYOU). The stocks in both subsidiaries fell significantly intraday, sharing the fate of most Chinese ADSs trading in the red after dampened trade relations between the world's two largest economies. Shares in Sogou dropped 12 percent to $3.40 per ADS, while Changyou declined 14 percent to $6.47 apiece.
For the third quarter, Sohu.com has lowered its revenue guidance, expecting to generate between $445 million and $470 million.