Analyst: JV Has No Quick Impact On Qihoo 360 Technology Co Ltd

Qihoo 360 Technology Co. (NYSE: QIHU) will boost its mobile Internet growth but won't see short-term gains from its joint venture with a leading domestic supplier of smartphones in China, according to an analyst.Qihoo, which provides Internet and mobile security products in China, earlier this week agreed to invest $409 million in a joint venture with Coolpad Group Ltd. (OTC: CHWTY).Qihoo will become the default provider of mobile services including security, app store and search on Coolpad phones.Morgan Stanley's Philip Wan said the deal could "create a closed-loop ecosystem" for Qihoo using Coolpad's user base.Coolpad expects to ship 60 million phones in 2014 within China, where it's marketing is focused. Wan, who maintained an Over Weight rating on QiHoo, said the venture is "a critical investment" but won't have much short-term earnings impact.Coolpad's net profit margin is less than 3 percent and Qihoo is unlikely to consolidate results of the venture with its financial statements, Wan said.Qihoo changed hands recently at $58.50, up $1.63; since announcing the joint venture Tuesday Qihoo shares are off 2 percent.