on mobile and video - investments will continue to rise to close the mobile gap - no real explanation for weak ARPU - Q4 SG&A increase to be indicative for 2013 cost levels
margins to go down due to increased investments and headcount - business won't grow fast enough to scale these additional expenses
close to desaster - would expect multiple downgrades tomorrow and the stock to dive down around 20%
Sure, every company spits out every little detail especially on new and emerging trends. The bottomline, BIDU is doing great despite disaster forecasts by some analysts and revenues shooting up. With China economy turning up and worst seasonal quarter behind it and Chinese new year, coming up next quarter is conservative by all counts. Market looks forward not backward.
They are sandbagging, and the margin pressure has been priced in for over a year now.
They said they are going to be doing acquisitions; these accretive additions are likely to rework all the numbers meaningfully higher. It seemed that revenue from all the new products they are launching is not counted into current guidance either. Strip out the cash and this is already trading under a 15 P/E and growing over 40%. A PE of 11 is justified? don't think so.
Your saying the numbers have been baked in for a year now? A year ago QIHU wasn't even in the search market, now they control 10% and growing right out of the gate! It's the growth trajectory that the street looks at, not cash! Money is damn near free right now, to the point that you have Comp. borrowing cash in the 4th quarter to pay special one time dividends.
stock has come back around 10% from short sale level already and should come down much more but that doesn't matter here of course.
as a trader I am paying attention to almost every significant event so you will find my estimates and predictions on many stock boards here on Yahoo.