Earnings for current year (12/15) are expected to end up at only ~$6.10 making the PE ~ 26 despite ~30% revenue increase Y/Y. It is expected that expenses for o2o will taper in 2016 resulting in earnings in ~ $7.90 (12/16). This would be a PE ~ 20 based on todays price. Revenue Y/Y are expected to be 25%, down significantly from the previous 5 years but still very good.
The Chinese, fair or not fair, are doing whatever it takes to keep their economy going.
You cannot predict the short term fluctuations or major events, but it seems reasonable that by December 2016 the price should conservatively be at least $237 (PE=30) or about 50% higher than it is today.
Once the dust settles a bit, I would hope that there is a very sharp spike to $175 in a very short time probably starting tomorrow. $210 by Dec 2015. Huge spike if there is an indication at any time that o2o spending is decreasing.
Don't get spooked in the short-term. Think of all the unfortunate people who got spooked today that sold stocks despite the strength of the economy. The yuan is up 14% on the dollar before the ~ 4% devaluation. Sell-off was irrational and the rational people stepped in. Same will happen with this stock. There is no objective reason to believe this company will not continue to provide solid results in growth. The only short-term variable is how much and how long will expenses for o2o continue.
You will actually be surprised but my guess, BIDU will rebound next year sharply to 250+.
Really good investments made. I own it at $190 and not planning to sell it.
Extremely bearish trading in the markets here...We are in for a crash type scenario......Dow could be down 400 today and S&P below 2045.............That come back mid day was the worst possible tip off for the crash type trade we are heading into.....As far as Bidu, look for 140 in the very near term.....
WHen the stock hits 140-145....We will see a bounce....BABA didn't help the cause for a long thesis this morning....AAPL bounce already failing......Market is going down hard here...I would be very careful if you are long or trying to buy a bounce......The vix is gonna break 20 at minimum on this swing