And they make piles of money, and grow 40% YOY. Now, if they want to get a higher stock price, they will have to stop all these things, and lose money like AMZN does then their stock price will rise, like AMZN's did:)
I agree this market does not like chinese. This market only likes american companies that report huge caches of money locked up off shore in some kind of lock box, place unknown:) you cannot make this stuff up.
I suspect the market is discounting their earnings because, it is not sure if the revenues and profits will be able to withstand the competition of the likes of QIHU in the mobile space. Then there is pressure on margins due to the need for investment and raising operation expenses. Add other emerging market risks like accounting issues, political, China macro and currency risks.
At some point, the stock will be a good buy. Not yet!
I am a frustrated holder of BIDU and LeapFrog(LF) and a frustrated short of Netflix. There is some serious manipulation out there. Retail investors are still missing from the market and stocks won't behave normally with big money manipulating the float. Meanwhile we'll just have to be patient and long term.