Can Sohu.com Inc (SOHU) Earnings Keep the Stock Soaring?

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One interesting exit strategy for Sohu might come from selling parts of its business. For instance, given the emerging competition in search between Baidu.com, Inc. (ADR) (NASDAQ:BIDU) and upstart Qihoo 360 Technology Co Ltd (NYSE:QIHU), speculation has arisen that Sohu’s Sogou search business might become a target for one or more of the other players in the space. For instance, for Qihoo 360 Technology Co Ltd (NYSE:QIHU), buying Sohu’s search unit would boost its share of the market to nearly 20%, enhancing its competitive threat against Baidu.

In the Sohu earnings report, watch for the company’s CEO to express his new vision now that he’s back from a year on sabbatical. So far, it appears that Sohu wants to use all of its properties to create an integrated high-quality experience, but whether that will pay off in the face of a heightened competitive environment is far from a certainty.

The article Can Sohu Earnings Keep the Stock Soaring? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Baidu, SINA, and Sohu.com. The Motley Fool owns shares of Baidu.

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