Baidu.com Inc. earnings report

dots Posted on October 26, 2005 , filed under Stocks | Print This Post

So the moment Baidu.com Inc. investors have been waiting for is over. For Baidu’s first quarter as a public company, earnings, before stock compensation expenses, were only a penny above analyst’s expectations. I continue to believe that the price of BIDU is well over inflated and prone to wild price swings. I haven’t seen anything like BIDU since the .com days that erased the fortunes of many investors. At BIDU’s closing price today, the company is valued at 2.62 Billion or 13.1 times the entire 2004 online search advertising market in China. For comparision, at Google’s closing price today, the company is worth approximately 11 times the entire 2004 online search advertising market in the United States. Google is a far more established company with stellar earnings reports quarter after quarter. There’s no reason for BIDU’s stock price to go as high as it has other than speculation and greed. The potential online seach advertising market in China hasn’t materialized yet. GOOG is trading based on a $9 Billion online search advertising market. BIDU is trading based on a $200 Million online search advertising market.

BIDU is trading around $68 in after hours trading.

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