Sohu.com's 15-minute chart has triggered an overbought RSI and a KDJ death cross at 08/12/2025 13:15. This indicates that the stock's price has risen too rapidly and is no longer supported by its fundamental values. Furthermore, there is a shift in momentum towards the downside, which suggests that the stock price has the potential to continue decreasing.
Sohu.com Limited (NASDAQ: SOHU) reported its second quarter (Q2) 2025 earnings, showing a mixed performance amidst market uncertainties. The company's total revenues decreased to $126 million, down 27% year-over-year (YoY) and 7% quarter-over-quarter (QoQ), according to the earnings call transcript [1].
Marketing services revenues stood at $16 million, down 21% YoY but up 14% QoQ. Online game revenues reached $106 million, down 28% YoY but up 10% QoQ. The company reported a GAAP net loss of $20 million, compared to a net loss of $38 million in Q2 2024 and a net income of $182 million in Q1 2025.
The earnings call highlighted Sohu's efforts to enhance user engagement and brand influence through various events and competitions, particularly in the K-pop and Hanfu segments. The company also reported progress in its online game business, with revenues reaching the high end of its guidance, driven by the success of new content and events.
However, the company faced challenges in its marketing services segment, with revenues largely in line with the low end of its previous guidance. The earnings call noted that the advertising revenue was still suffering sequential weaknesses, with no clear signs of improvement due to macro uncertainties.
The stock's technical indicators, as of August 12, 2025, at 13:15, showed an overbought Relative Strength Index (RSI) and a KDJ death cross, indicating that the stock's price has risen too rapidly and is no longer supported by its fundamental values. This suggests that the stock price has the potential to continue decreasing [2].
In conclusion, Sohu.com Limited reported mixed performance in Q2 2025, with challenges in its marketing services segment and progress in its online game business. The company's stock price faces potential downward pressure due to technical indicators suggesting overbought conditions and a shift in momentum towards the downside.
References:
[1] https://www.insidermonkey.com/blog/sohu-com-limited-nasdaqsohu-q2-2025-earnings-call-transcript-1584504/
[2] https://www.insidermonkey.com/blog/sohu-com-limited-nasdaqsohu-q2-2025-earnings-call-transcript-1584504/
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