Chinese Internet search leader Baidu, one of the stocks in our Domain Parking Stock Index, reported earnings early this morning, and posted a 91 percent rise in quarterly net profit
The company said it expects continued strong revenue growth.
Net income rose to $51.2 million in the third quarter from $24.2 million from a year earlier. Net profit per share was $1.47, beating the $1.27 per share forecast by Reuters Estimates.
For the fourth quarter, the company said it expects total revenue ranging from $151 million to $155 million, which would represent growth of 80-85 percent growth over a year ago.
Baidu ranks No. 3 worldwide behind Yahoo, according to data from market research firm comScore, but its customers are largely limited to China.
Baidu’s revenue increased 85 percent to 919.1 million yuan from a year earlier, largely in line with analysts’ forecasts.
The number of active online marketing customers running Baidu-search advertising grew to 194,000, an increase of 7.2 percent from 181,000 customers in the second quarter.
Baidu dominates the Chinese Web search and advertising market, with an estimated two-thirds of the audience in the world’s most populous market.
Despite the glowing earnings report shares of Baidu.com fell over 15% in morning trading down, $39 at $210 a share.
The only negative I could find in the reports was that many investors thought that Baidu would start a stock buy back program to take advantage of the $350 Million in cash its sitting on, but baidu denied that they would be starting such a program.
Everything is worth less these days so it is probably just falling in line with other stocks until things stabilize.
Microsoft should try buying Baidu.com instead of Yahoo!
Two things:
1. BIDU was very popular with hedge funds, lot of forced liquidation.
2. Perception that a lot of BIDU’s lift was from the olympics and not repeatable.
I’m convinced on #1, not sure on #2, but that’s what it driving it down.
Baidu.com Profit Increases 91%: Stock Falls – many people investing into the share market speculate (that is how profit’s and losses occur) so they sell their so called share in the company even if the company makes profit.
Selling of shares is associated with FEAR and buying shares is associated with greed