I purchased a small position this evening right before the 8pm call (130 shares @ 84.69). The earnings werent great but BIDU did not lower guidance. This makes me believe that they expect a quick ROI on S&GA/R&D costs. Mobile is going to be the growth. Especially in a Chinese economy where mobile is less mature than it is in the US. I like the prospects of BIDU. Short term I dont think the stock gets hammered too hard but Long Term is where the win will be if people decide to hold. Good luck everyone.
I purchased at $84.85 after hour. BIDU did not missed too much, and Q1 is the worst quarter in the year. It has the trailing PE at 17, and growth rate at 40%. I think $83 is the bottom but if it goes to $77, targeted by short for so long, I will load more definitely. BIDU is hassled by QIHU just like several other big companies, but i believe that QIHU will very likely be destroyed by itself over time.
You will make out very well. Baidu is the only game in Mainland China.
Spoke to a friend in Beijing, he never even heard of Qihoo??
But when i mentioned Baidu, He said… of course they're number one in China.
Sentiment: Strong Buy
Yes, investors will win buying here. Traders will do what they do, just ignore the short term noise if you have a longer time horizon.
Much better value than QIHU, but it may not hurt to have a little of both. If QIHU comes in a bit I may pick some up, but not here -2% from 52 wk high going into May.
jms_linn- Not sure what tomorrow will do...you still got in at a good price compared to where I think this is going...most of my money is tied up in BAC right now or I would have purchased more. A dividend would be nice but I do like their timing of the massive investment in their business vs dividend. They have competition and are clearly going to prevail in stealing back share as a result of their innovation (I am specifically excited about their mobile platforms/innovation). GOOD LUCK!