(Yicai Global) Jan. 31 -- Shares of Chinese internet firm Sohu.Com Inc. and unit Sogou Inc. have tumbled in New York since Sohu announced a USD556 million loss for last year. Sogou has been dragged lower despite a strong financial showing by China's second-largest search engine developer.
Sohu [NASDAQ:SOHU] has slumped 16.6 percent since Jan. 26. The Beijing-based company released its disappointing earnings results on Jan. 29. Its shares closed at USD38.61 yesterday, down from USD46.31 at the end of trading on Jan. 26. Sogou's stock [NYSE:SOGO] has lost 13.6 percent to close at USD10.65 yesterday, from USD12.32 on Jan. 26.
Sohu's stock is trading closer to its 52-week low of USD37.81, while Sogou is just shy of its 52-week low of USD10.64.
Sohu has reported losses for nine quarters in a row. It's fourth-quarter results for 2017 particularly disappointed investors. Sogou released its annual report the same day as its parent company, showing that net profit surged 54 percent to USD105.9 million last year on a 38 percent jump in revenue to USD908.4 million.
Sogou's search traffic via mobile devices increased 31 percent last year for an 18 percent share of the Chinese market. The number of daily active users on its Chinese character phone input service rose 46 percent to 330 million.
Tencent Holdings Ltd. formed a partnership with Sogou in October under which the Chinese internet behemoth's WeChat will be connected to Sogou's search engine, enabling users to access its search function via the social networking platform.
Tencent became Sogou's largest shareholder in September 2013. Sohu is Sogou's controlling shareholder and has been since it incorporated in 2005.