Sohu.com (SOHU) Sees Ad Revenue Slowing in 2009

Sohu.com (SOHU) is weak this morning on news it sees ad revenue slowing to 20-30% in 2009; but frankly this company has been booming off its gaming business anyhow. That hasn't stopped the stock from being punished this morning to the tune of 7%. I've cut this name back severely on this tremendous run up (too early in fact), but I'd like to add some in the lower $70s but we have that daunting gap in the chart in the low to mid $60s as well...

• Chinese media firm Sohu.com (SOHU) expects core advertising revenue to grow up to 45 percent this year as corporations vie for consumers during the Beijing Olympics, but it warned on Friday growth may taper off to about 20 to 30 percent in 2009.
• "The Olympic Games is the major driver for growth in online advertising," Wang said.
• Given Sohu is the biggest Internet firm on the mainland, our advantage of strong content will enable the company to achieve a 40 percent or more year-on-year growth in advertising revenue."
• The firm, which also vies with Baidu.com (BIDU), accounts for advertising revenue in two parts: so-called brand advertising, which is more than 90 percent of total online ad sales, and ad revenue from its search engine business.
• Wang said a three-day suspension of its online games service, in memory of victims of the May 12 earthquake in Sichuan that was the country's deadliest disaster in decades, would not affect second-quarter revenue much.
• It maintained guidance on online gaming revenue of up to $45 million and for advertising at up to $41 million. uidance for total revenue in the second quarter, including other revenue sources, was maintained at up to $96 million, she said.