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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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Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Baidu, Sohu.com, and SINA. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.