SOHU:NASDAQSohu.com Limited Analysis
Data as of 2026-05-02 - not real-time
$15.70
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Valuation looks extremely cheap – the trailing P/E is just 1.1 while the industry average sits near 19, and the price‑to‑book is only 0.32 against a book value of $49 per share. Balance sheet strength is evident from $830 M of cash versus $36 M of debt, giving a solid cushion despite negative operating cash flow.
Technically, the stock trades around its 20‑day SMA (15.35) and just below the 50‑day SMA (15.80), with a neutral trend, RSI at 53 and a bullish MACD histogram (+0.055). Support sits at $14.54 and resistance at $16.12, leaving upside potential of roughly 33% to the target median price of $21. Recent news highlights the profitable Changyou gaming segment and a strong cash position, but notes weakness in the media arm.
Technically, the stock trades around its 20‑day SMA (15.35) and just below the 50‑day SMA (15.80), with a neutral trend, RSI at 53 and a bullish MACD histogram (+0.055). Support sits at $14.54 and resistance at $16.12, leaving upside potential of roughly 33% to the target median price of $21. Recent news highlights the profitable Changyou gaming segment and a strong cash position, but notes weakness in the media arm.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price near short‑term support with limited upside in the next weeks
- Neutral technical trend and modest volume decline
- High cash reserves mitigate near‑term downside
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Significant valuation gap (P/E ~1 vs industry ~19)
- Profitability in Changyou gaming segment driving earnings
- Strong balance sheet with ample liquidity
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- Undervalued relative to book and earnings multiples
- Potential for turnaround in media segment as digital ad spend recovers in China
- Low beta (0.7) suggests limited market‑wide volatility exposure
Key Metrics & Analysis
Financial Health
Revenue Growth5.60%
Profit Margin67.44%
P/E Ratio1.1
ROE35.81%
ROA-2.11%
Debt/Equity2.84
P/B Ratio0.3
Op. Cash Flow$-4762000
Free Cash Flow$-6944250
Industry P/E18.9
Technical Analysis
TrendNeutral
RSI52.8
Support$14.54
Resistance$16.12
MA 20$15.35
MA 50$15.80
MA 200$15.60
MACDBullish
VolumeDecreasing
Fear & Greed Index91.09
Valuation
Target Price$21.00
Upside/Downside33.76%
GradeUndervalued
TypeValue
Risk Assessment
Beta0.71
Volatility32.70%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.