If one stock that should convincingly sit in an investor’s portfolio for now is Qihoo 360 Technology Co Ltd (NYSE:QIHU), according to FBN’s Charles Payne. He said that the company has an amazing execution ability with its core business in internet and mobile security. Payne highlights that Qihoo 360 Technology Co Ltd (NYSE:QIHU) is a dominant player in China, taking first position in browser, mobile and the app store, while grabbing second position in the search engine space. Off late, Qihoo 360 Technology Co Ltd (NYSE:QIHU) has been successful to eat away a major portion of its market competitor, Baidu Inc (ADR) (NASDAQ:BIDU)’s market share, and now, is following the footsteps of its another rival, Alibaba.com, as it is eyeing to go global with its first big step in Barcelona.
Payne also throws light on how Qihoo 360 Technology has been able to beat the expectations of the Wall Street. In the first quarter, its revenues came in at $265 million, which is up by 141%. Whereas its net income rose from $17.5 million from year earlier to $73 million in the first quarter, translating into earnings per share of $0.54 from that of $0.14 a year earlier. The strong revenues and earnings came on the back of increased user traffic, where internet users saw a record number of 490 million and smartphone users’ traffic jumped from 275 million to 538 million year over year. Based on the strong business and financial performance of the company Payne expects the share price of Qihoo 360 Technology Co Ltd (NYSE:QIHU) to touch at least $124 per share.
Agreeing with Payne’s thoughts, James Frischling, Newoak Capital’s President, Penn Financial Group founder, Matt McCall, and retail analyst Hitha Prabhaka, also find Qihoo 360 Technology Co Ltd (NYSE:QIHU) attractive. While Frischling underlines the concerns related to the United State’s stringent regulations with respect to Chinese based internet stocks, McCall said that the value provided by the company is far better than the rewards earned back at home. At the same time, Hitha Prabhakar also sees Qihoo 360 Technology Co Ltd (NYSE:QIHU) as an attractive bet.