1-Star Stocks Poised to Plunge: Qihoo 360?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese Internet and mobile security products specialist Qihoo 360 Technology (NYS: QIHU) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Qihoo 360's business and see what CAPS investors are saying about the stock right now.

Qihoo 360 facts

Headquarters (founded)

Beijing (2005)

Market Cap

$2.5 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$251.9 million

Management

Co-Founder/Chairman/CEO Hong Yi Zhou

Co-Founder/President Xiang-Dong Qi

Trailing-12-Month Return on Equity

12.4%

Cash/Debt

$359.1 million / $0

Competitors

Kingsoft

Microsoft

Tencent Holdings


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 65% of the 190 members who have rated Qihoo 360 believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, dwKapital, succinctly summed up the bear case for our community:

This is a Chinese website that offers FREE anti-virus software and a bunch of games common to many other sites. It apparently grows revenues and earnings at exorbitant (and beautiful to look at) rates off of a multitude of link ads. Qihoo 360's founder, [Hong Yi Zhou], has a history of falsifying financial information. ... On top of all of this, it trades at a higher market cap than Renren (Chinese Facebook).

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The article 1-Star Stocks Poised to Plunge: Qihoo 360? originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of Microsoft.Motley Fool newsletter serviceshave also recommended creating a synthetic covered call position in Microsoft. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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