According to the report daily view of newly added TV dramas fell 55% to 25 million in the period of January 1, 2014 to March 25, 2014, down from 56 million in the fourth quarter of 2013. TH Capital analysts said the media company could have added about 43 hit TV dramas in the quarter, compared to 35 in the fourth quarter.
While viewership of TV dramas fell, the analysts say in-house content viewership increased in the quarter. Daily views of Youku's in-house content could grow 16.8% to 41.3 million from 35.4 million in the fourth quarter.
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TheStreet Ratings team rates YOUKU TUDOU INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOUKU TUDOU INC (YOKU) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share."