this stock is done as well as goog..thats why this split is taken place..all companies call a stock split when growth is over..stock will fall..successful companies never split..brk.a appl..check out my other calls on stocks on hov m.board.im always right 1 day ahead. bidu heading to 54. first stop 72.
Last quarter the company produced earnings 165% better thatn the quarter a year ago, I suspect that this quarter will even be bigger without GOOG in play. Let's hope GOOG stays out of China at least one full quarter and hopefully 3-4 quarters of just robust growth.
WHY will it go down? The company is growing 60% per year. The company is forecasted to grow 45% per year for the next five years. That means it will be 6 times its current size. So if the PE is cut in half and it does grow at that pace, then the price will triple in 5 years.
I suspect it will grow 40 - 50% for the next 10 years, reaching the size of Google. That puts the company at 29 to 58 times it's current size. If the PE is cut by 75%, that means the price will have risen by a factor of 7 to 14.
The internet has only scratched the surface in one of the fastest growing economies in the world.
MSFT, ORCL and CSCO stocks moved sideways for the last ten years because corporate performance slowed. Stock prices rise and fall as a result of the fortunes of the underlying company.
Looking at the big picture, stocks don't go up because they split. Stocks split because the company's value went up.
AAPL is at 250 level and Baidu went to 710 level. Almost 3 times. 710 is quite a high price to get new investors. Your logic of no growth forward and that being the reason for split is not correct. Last time aapl got split at 85 or 90 dollars ...fyi...
AAPL has split twice in the last ten years, total of 8:1 since 1987. If you're really 19 years old, then you should realize that history began before you learned to read.
BIDU's stock split will improve liquidity, may cause some short term gyrations, but if the company continues to perform as it has in the past, growing at 60% per year then it will continue to rise at an average rate of 60% per year.
BIDU's current price reflects growth of "only" 45% per year, a bit behind it's current growth rate. I expect BIDU to double over the next 18-24 months.