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Sohu (NASDAQ:SOHU).com Inc. shares have faced a significant downturn, touching a 52-week low of $10.6, as investors navigate through a landscape of economic uncertainties. According to InvestingPro analysis, the stock appears undervalued with technical indicators suggesting oversold conditions. The company maintains impressive financial health with a robust gross profit margin of 72.29%. The Chinese internet giant, known for its pioneering role in the country's online media, search, and gaming services, has seen its stock price struggle in a challenging market environment. Despite market pressures, the company maintains strong fundamentals with a healthy current ratio of 3.24 and trades at just 0.37 times book value. Over the past year, Sohu's stock has experienced a decline of 5.68%, reflecting investor concerns over regulatory pressures, competitive dynamics, and broader market trends affecting tech companies globally. This latest price level represents a critical juncture for the company as it strives to adapt and innovate in an ever-evolving digital economy. Discover 12 more exclusive insights and detailed analysis with an InvestingPro subscription.
In other recent news, Sohu.Com Inc reported a net loss and a decline in revenue for the fourth quarter of 2024. The company revealed total revenues of $135 million, marking a 5% decrease compared to the previous year, influenced by weak consumer spending and reduced advertising budgets. Sohu's earnings per share did not meet market expectations, contributing to a negative market reaction. The company's full-year revenue for 2024 remained flat at $598 million, while it experienced a GAAP net loss of $100 million, a significant increase from the $66 million loss in 2023. Brand advertising revenue dropped by 7% year-over-year to $19 million, and online game revenue saw a 4% decline to $110 million. Looking forward, Sohu projects brand advertising revenue for the first quarter of 2025 to be between $30 million and $40 million, with online gaming revenue expected to range from $105 million to $115 million. The company continues to focus on AI integration and international expansion as part of its strategic growth initiatives.
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