Sohu.com Stock Soars 37.53% on Earnings Beat

Sohu.com's stock surged by 37.53% in pre-market trading on April 22, 2025, marking a significant rise that has caught the attention of investors and analysts alike.

Sohu.com's recent financial performance has been a key factor in its stock price movements. In the fourth quarter of 2024, the company reported a non-GAAP net loss of $15 million, a slight increase from the previous year's loss of $11 million. Total revenues fell by 5% year-over-year to $135 million. Despite these challenges, the company's brand advertising revenues hit the high end of their previous guidance, and both online game revenues and bottom-line performance exceeded expectations. The company's CEO, Dr. Charles Zhang, highlighted efforts to refine products, optimize algorithms, and control budgets, which may have contributed to the recent stock surge.

Sohu.com's stock has been identified as one of the most oversold stocks in the communication services sector, with an RSI value of 19.3. This indicates that the stock may be undervalued and presents a potential buying opportunity for investors looking to capitalize on short-term price movements. The company's stock has seen significant volatility, with a 52-week low of $7.79 and a recent gain of 5.3% to close at $8.33 on Thursday.

Sohu.com operates in a competitive landscape, primarily competing against major players such as Tencent Technology Limited and ByteDance (Jinri Toutiao) in the mobile newsfeed sector. The company's ability to innovate and adapt to market trends will be crucial in determining its future performance and stock price movements.