Stock market today: S&P 500 closes at record high despite Oracle drag on AI stocks
Shares of Sohu.Com Inc (NASDAQ:SOHU) are moving higher today, following a beautiful, classic bottoming tail yesterday. Bottoming tails are significant bullish signals This reversal in trend is major for technical traders as the Chinese stock is trading at multi-year lows. While the chart sets up for a surge back to $17.35 in the near-term, traders are particularly intrigued by its total cash per share of $47.97. To state this clearly, the stock is trading at $13.50 while it has a total of $47.97 in cash per share. To put this another way, the market cap of Sohu.com is $530 million while it has $1.88 billion in cash. Based on these metrics alone, this stock is a screaming buy. Just in the near-term, I have an upside target of $17.50. Likely achieved within a month.
Sohu.com is a marketing/media company in China. Sentiment has gotten way too negative on this sector partly because of the China slowdown but also because of the on-going trade war. As most analyst will tell you, the trend war will likely be over before the US presidential election in 2020. In addition, the amount of stimulus thrown at the Chinese economy by the Chinese government has been huge. This will start to trickle down into business spending. At the current valuation, Sohu.com makes a ton of sense as a bottom play with significant upside potential.
Disclosure: Chief Market Strategist Gareth Soloway from InTheMoneyStocks.com owns shares of Sohu.com (SOHU).