I am a mo-mo guy, so I will probably be out at any sign of trouble tomorrow. But in looking at the numbers, I have a question for any longs out there. How do they grow revenues 65% YOY, but EPS grows only 10% YOY? Doesn't make sense to me unless expenses have gotten out of control. I look at the balance sheet and see their expenses doubled YOY eating into their margins. Anyone have any thoughts as to the big discrepancy between rev growth and EPS growth? Why the big runup in expenses?
If they invested money on their search engine where is the search money last Q was 10% nothing was mentioned WHY? Did it decline below 10%. Qiho search income is useless because they have to pay Google the line share of it. What the monkeys will say now. BIDU WILL BE UP TOMORROW BIG
that's easy, just say they have 10% search market, that's a lot of revenue, then, they need to pay sogou for engine, pay google for ads, so only a penny left in the pocket, but with huge revenue for your eyes.
Now, they need spend even more to develop their own technology. Just image these numbers are real.From their business conduct, it's hard to trust which one is real, which one is fake.
It is concerning and its not as simple as a normal growing company as some guy said below. You are correct to point this out and it will be noted in many reports tomorrow. The question becomes will those expenses continue in 2013 and will they pay off. That is what it comes down to. They should have done a better job controlling this so margin %'s do not get knocked off. If they increase again like this you can expect a 20% HC in quarter this happens and is not covered by profit.
Zeppelin: In listing to the earnings call it is apparent product development is driving the expense train.....Gotta have product development, R & D, etc. to grow your company.....I'm liking what I'm hearing....This company is solid.....