SOHU Should I Buy
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Sohu.com Ltd (SOHU) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's recent financial performance, positive analyst sentiment, and strong recovery in profitability make it a compelling choice. While the technical indicators are neutral, the stock's potential for growth and the absence of significant negative catalysts support a buy decision.
The MACD histogram is negative (-0.108) and expanding downward, indicating bearish momentum. RSI is neutral at 36.954, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot level (16.254), with support at 15.437 and resistance at 17.072.
Analysts from Jefferies and Citi raised price targets to $20 and $22, respectively, with Buy ratings.
Q4 2025 financials showed a significant recovery in net income and a 5.63% YoY revenue growth.
Gross margin improved to 75.27%, indicating better operational efficiency.
Technical indicators do not show strong bullish momentum.
No significant hedge fund or insider trading trends.
Stock has a 30% chance of a slight decline (-0.97%) in the next day.
In Q4 2025, Sohu reported a net income of $223.285 million, a significant recovery from a net loss of $21.291 million in Q4 2024, driven by tax benefits. Revenue increased by 5.63% YoY to $142 million, and gross margin improved to 75.27%. Non-GAAP EPS was $9.77, reflecting a 5.2% YoY growth.
Analysts are optimistic, with Jefferies and Citi raising price targets to $20 and $22, respectively, and maintaining Buy ratings. Positive sentiment is driven by strong Q3 and Q4 performance and innovative marketing solutions highlighted by management.
