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I will now advocate the epitome of the anti-momentum short trade, a little Chinese company called youku.com (YOKU). Yes, you have heard of it.
BIDU: Baidu, China's own internet giant had announced its own Video channel website just two months back. Keeping all the censorship rules in mind,
SOHU: Online video, our potential future revenue driver, is achieving significant traction as we add high-definition content and leverage the synergies of
the Sohu platform to make our video products even more attractive to both users and advertisers.
Now, let me walk you through each of our businesses. On the portal side, we continue to believe online video is one of the fastest growing segments,
2013, reaching RMB11 billion in 2013.
According to Class IV and iResearch, for the quarter just completed, Sohu ranked third in terms of total number of online video views and the total
SINA: Our total rich media and video advertising is getting closer to like 18 to 19% of revenues, and video advertising in particular is growing more
So, what is the "youtube" of China worth? Well, considering there are lots and lots of "youtubes" in China, not that much. But, 60 times run-rate
I am actually short YOKU against SOHU and SINA. Basically, YOKU has an enterprise value of almost $4 billion, with $17m of revenues last quarter.
As a side note, I am short Netflix and believe it is worth a lot less than the current price. Yet, I think it is easily worth more than twice YOKU!
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