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.