Chinese Internet search company Baidu is bucking its post-earnings stock technical pattern with continued acceleration after it handed in a stellar second-quarter report buoyed by a milestone on mobile.
Shares of Baidu were trading up 10 percent and hitting all-time highs in afternoon trading on Friday, the day after it posted $1.93 billion in revenue, an operating profit of $573.6 million, and an adjusted EPS of $1.73 compared to the $1.32 consensus for its second quarter.
The day two run-up to is a little atypical for the company, which lost initial post-earnings gains in the second day of trading after its prior two reports.
The sustained enthusiasm can be attributed to Baidu’s mobile sales. For the first time, mobile revenue from search, maps, and app distribution contributed to 30 percent of total revenue, the company said. The 14-year-old company also saw its 12-month price target boosted Friday by Bank of America, Piper Jaffray, Goldman Sachs, and Deutsche Bank. Goldman is the most the bullish of the bunch with a $260 price target.
The majority of traders on StockTwits are also bullish on the Chinese powerhouse, with some optimistic that the strength of Baidu equates to the overall health of Chinese technology stocks, including Alibaba, which is expected to go public next public.