Why it's happening: Yesterday, Sohu plunged after investors effectively ignored actions by Chinese regulators intended to stabilize the country's markets. To be sure, the Shanghai Composite Index has pulled back 26% over the past month following a nearly 60% rise earlier in the year, and the tech-heavy Shenzhen Composite Index has fallen 5.3% so far in today's trading alone. As unease over the markets has increased this week, hundreds of Chinese firms have also suspended trading in a further attempt to stem the declines.
Again, though -- and however painful these declines might be -- shareholders should strive to maintain a level head during this turmoil, and to keep it in perspective as coupled with the year's earlier gains. In the end, these moves have little to do with Sohu.com's underlying business. Over the long term, that's where patient investors' focus should remain.
Steve Symington owns shares of Apple. The Motley Fool recommends Apple and Sohu.com. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.