Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Sohu
So what: The sector-wide selloff also rocked momentum stocks like Baidu
Now what: A lot of the skepticism surrounding some of these companies is very justified, but many hastily categorize them together. U.S. regulators face some challenges when digging for answers from Chinese companies because the Chinese government prohibits inspecting auditors based on China, although regulators in both countries are beginning to cooperate more during inspections for the safety of public investors. I happen to think Sohu is getting punished unfairly here, and I've always liked the company's prospects with the presumption that its books are intact.
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