July 26, 2011 (Chinavestor) Chinese internet stocks continue to defy market sentiment on Tuesday at noon. Earnings from Baidu.com Inc. (NASDAQ:BIDU) moved the stock $7.56 or 4.8% higher by mid-day but some internet stocks got even a better second wind as the following chart testifies. Sohu.com Inc. (NASDAQ:SOHU) got a CLSA upgrade and moved 4.94% higher followed closely by Home Inns & hotels Management (NASDAQ:HMIN). Advances of NetEase.com Inc. (NASDAQ:NTES) and Sina Corp. (NASDAQ:SINA) are also in relation with BIDU's stellar earnings. Chinese internet stocks have enjoyed a sound rally in the second part of July ahead of the earnings season. Sohu.com Inc. (NASDAQ:SOHU) advanced 29% for the past month as investors picked up stocks at bargain prices. Sohu.com Inc. (NASDAQ:SOHU) is due to report on August 1st. along with its online game unit, Changyou.com Inc. (NASDAQ:CYOU). Sina Corp. (NASDAQ:SINA) is next a week later followed by NetEase.com Inc. (NASDAQ:NTES).
Sohu.com Inc. (NASDAQ:SOHU) and Sina Corp. (NASDAQ:SINA) are among the largest Chinese online portals in China along with Tencent Inc. (HKG:0700). NetEase.com Inc. (NASDAQ:NTES) is another internet heavy weight, making a big chunk of its net from online game titles. NetEase.com Inc. (NASDAQ:NTES) overtook Shanda Interactive (NASDAQ:SNDA) as the largest online game developer and operator two years ago, a position it has been strengthening ever since.
Given that Baidu's earnings speak volumes about the strength of the Chinese internet sector, expectations run high that the rest of the club will do well. So today's surge in Sohu's and Sina's stock price comes as a little surprise. Should market sentiment turn positive, additional upside is more than likely. Enjoy the ride, investor!