Baidu, Inc. (NASDAQ:BIDU): J.P Morgan believes that short-term concerns that Baidu, Inc. could make large acquisitions, increase investment, and potential new features from Qihu (NYSE:QIHU) are overdone. The firm sees valuation as attractive and recommends purchase. Shares are Overweight rated.
It is silly but it is true that BIDU's stock movement is positively correlated with that of GOOG or, in general, NASDAQ. So today's small rise is satisfactory in the context of sharp drop in GOOG and AAPL.
Give it a week. It might move back up past resistance over the next week. Today's bounce is from traders. It takes time for the big guys to have their meetings, stop selling and start buying. I would expect to see more upgrades come in if BIDU continues to fall as the fundamentals are good and the stock will eventually move back up.