Can somebody who is long please explain why this company is worth over $13,000,000,000. Thanks
People don't buy BIDU for valuation purpose, but for speculation purpose only .... If you look for something that you can justify with the numbers, then buy something else that is less risky ....and the returns are less as well .
I think you have to parallel this to Google.Google in about three years has been able to show almost $14 per share in earnings and is expected to grow them quite well for the next few quarters.BIDU has a larger future market, is just starting out, is showing earnings of $2 ALREADY and they are just starting.They are expected to double earnings next year and the potential for an upside surprise is there. BIDU and the Chinese internet are almost starting out together and really should grow together. BIDU has 61% market share. They are a Chinese company in China.Other Chinese internet search startups will hurt Google more than BIDU thus weakening BIDU's chief rival.They do have a strong story and even though the expectations are high when they grow their earnigs stream the stock will rise accordingly.THEY DO HAVE A GOOD STORY.Some analysts expect this to be a 70-120 billion dollar company in just 2 to 3 years.
They can't because it isn't. It is currently valued at that due to momentum plays and day traders (on both sides). Forget fundamentals or you will lose your money
It isnt worth 13 billion. It is worth closer to 26 billion. That will be realized in the next 12 to 18 months