Leading Growth Stocks: 3D Systems Corporation (DDD), Qihoo 360 Technology Co Ltd (QIHU)

Qihoo 360 Technology Co Ltd (NYSE:QIHU)

Qihoo is a Chinese company known for its antivirus software and 360 browsers.  Qihoo is the No. 3 Internet company in China as measured by user base, according to iResearch.  The company is also the No. 1 provider of Internet and mobile security products in China as measured by user base, according to iResearch.  That said, Qihoo 360 offers comprehensive high-quality Internet and mobile security products free of charge, providing users with secure access points to Internet activities. As a result, the Company has amassed a large and loyal user base, which it monetizes primarily through offering online advertising and Internet value-added services.  According to some analysts, Qihoo is the next best thing since Google Inc (NASDAQ:GOOG).  There is a certain amount of irony in that thinking because Qihoo recently entered the smart phone market.  The company collaborated with Haier, the largest Chinese consumer electronics company, to launch the Battleship phone.  Qihoo reported that it will provide the software (even though the Android is the main operating system) and Haier will provide the hardware.

My Foolish Take

These three companies are all growing at phenomenal rates.  The problem is that they also all have valuations that assume that they will continue to grow at rapid rates into the distant future.  To the best of my knowledge, all three of these companies have price to earnings multiples in the low to mid 90’s, which is certainly not cheap.  3D printing stocks are still hot and Qihoo has piqued my interest.  But it is unclear whether or not the run for 3D printing stocks is over and whether or not Qihoo is a legitimate competitor in many of the spaces it purports to compete!

The article Leading Growth Stocks originally appeared on Fool.com and is written by Ryan Peckyno.

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