Beijingle Bells at Sohu (Nasdaq: SOHU  ) has yet another reason to be excited about this summer's Olympic Games in Beijing. The popular Chinese Internet portal inked a deal with news website, allowing it to provide live webcasts and video on demand of the Olympic events.

Sohu was already a solid coattails-rider for the Beijing bash. The company is the official online reporter for the Olympic Games. The new deal will make even more magnetic during the competitions.

Oh, and before you point out how there may be a little geopolitical controversy with the games and boycott threats, save it. Chinese residents will be watching no matter what outsiders think.

The extra boost comes at a time when Sohu is doing little wrong. Over the past year, Sohu has done more than simply beat Wall Street's expectations. With every passing quarter, the margin by which it tops analyst guesstimates has widened.


EPS Est.

EPS Actual


Q2 2007




Q3 2007




Q4 2007




Q1 2008




EPS = earnings per share.

Sohu isn't the only coattails-rider getting fresh market attention these days. Sterne Agee initiated coverage of public advertisers VisionChina Media (Nasdaq: VISN  ) and AirMedia (Nasdaq: AMCN  ) with buy ratings earlier this week.

Sohu is a Web veteran. Along with SINA (Nasdaq: SINA  ) and NetEase (Nasdaq: NTES  ) , the three companies were some of the hottest performers in 2002. Their business models relied heavily on providing wireless handset content, but that market dried up with tighter government regulation. Sohu, SINA, and NetEase scrambled into new areas, with NetEase growing to become a leader in online multiplayer games, while Sohu and SINA beefed up their Web portals.

We're still a couple of months away from the Olympic Games, but I say we just get it over with and hand Sohu the gold medal it deserves.

Related Foolishness:

NetEase has been recommended to subscribers of the Motley Fool Rule Breakers newsletter service. SINA is a Motley Fool Stock Advisor pick. If you carry a torch for stocks worthy of winning the gold, look into either service with a free 30-day all-access pass.

Longtime Fool contributor Rick Munarriz has been a fan of China's high-margin online stocks for a long time. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

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10/21/2016 4:00 PM
SOHU $42.51 Up +0.60 +1.43% CAPS Rating: ***
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