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Sohu: Limited Share Price Upside Due To Continued Losses (NASDAQ:SOHU)

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Sohu: Limited Share Price Upside Due To Continued Losses (NASDAQ:SOHU) | Seeking Alpha
































Sohu.com Limited faces decelerating revenue growth and widening losses, with a heavy reliance on its aging flagship game TLBB.Advertising revenue is declining due to broad economic weakness in China, with 2Q26 guidance indicating a further 12.5% YoY drop.Despite a strong balance sheet with $800M cash and no debt, SOHU trades at a low 0.6x P/S, reflecting market skepticism about earnings recovery.I rate SOHU as a SELL, citing limited upside amid mature gaming assets, weak ad trends, and negative forward guidance.

Jul. 06, 2026 2:08 PM ET

Top down view of colorful illuminated gaming accessories laying on table.

gleitfrosch/iStock via Getty Images

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Summary

Sohu’s stock is down nearly 87% from its historical peak. The company depends on one game for the majority of its revenue, where the gaming platform is aging. Both gaming and advertising revenue are expected to decelerate in

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