Youku Tudou Inc (YOKU): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Youku Tudou ( YOKU) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Youku Tudou fell $0.24 (-1.4%) to $16.97 on light volume. Throughout the day, 1,224,107 shares of Youku Tudou exchanged hands as compared to its average daily volume of 2,041,400 shares. The stock ranged in price between $16.81-$17.16 after having opened the day at $17.12 as compared to the previous trading day's close of $17.21. Other companies within the Internet industry that declined today were: Deltathree ( DDDC), down 30.0%, China Finance Online ( JRJC), down 8.9%, MeetMe ( MEET), down 6.4% and Friendfinder Networks ( FFN), down 4.7%.
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Youku Tudou Inc. operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. Youku Tudou has a market cap of $2.8 billion and is part of the technology sector. Shares are down 5.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Youku Tudou as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

On the positive front, SouFun Holdings ( SFUN), down 5.4%, ChinaNet Online Holdings ( CNET), down 5.0%, VirnetX ( VHC), down 3.9% and Vipshop Holdings Ltd ADR ( VIPS), down 3.7% , were all gainers within the internet industry with Equinix ( EQIX) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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