Home » Stocks » Bear Case Scenario for $SOHU, $BIDU, $BABA, $FB, $TWTR, $GOOG, $TCEHY, $NFLX, $SINA

Bear Case Scenario for $SOHU, $BIDU, $BABA, $FB, $TWTR, $GOOG, $TCEHY, $NFLX, $SINA

Sohu is about to release earnings. Ponder the Bear Case Sceanrio:

Sohu faces not only established portals such as Sina and Tencent, but also a growing number of vertical sites and social networking sites.

The market is crowded with many large players challenging for top spot, compelling Sohu to continue investing heavily in content and IT infrastructure in the near future.

Regulatory risks abound in the online gaming. The Chinese government has tightened scrutiny of game content and the virtual products allowed for sale in the games.

George Gutowski writes from a caveat emptor perspective.