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AMZN Earnings, BIDU Earnings Prove Stocks are Where They Should Be

Amazon (AMZN) earnings and  Baidu.com (BIDU) earnings prove the stocks are where they should be, and deserved the climb they both recently made.

BIDU reported earnings last night. Last quarter’s profit of $0.45 was 5 cents better than the $0.40 estimate from August. In the year-ago period, BIDU made $0.20 so profit growth was 125% — nice.

AMZN’s profit growth wasn’t so great because of comparisons from last year, but that was a one-quarter thing and growth is expected to pick up in future quarters.

Check Out the Price Action

Numbers aside, you have to like the price action both stocks are giving. I last reviewed these stocks in August, here’s what these two stocks have done since:

  • BIDU has gone from $84 to $102 (+21%) — then reported earnings and is expected to open at $106.
  • AMZN went from$125 to $159 (+27%) — and opened at $163 yesterday after reporting earnings.

I’m not making a call on whether the stocks are worth what they are selling for, but the market obviously is. For both stocks to make moves greater than 20% in a quarter — then hold those gains after reporting earnings — tells me these stocks are where they should be, and deserved the bumps up.

At the time of publication, clients of davidsharek.com owned shares of BIDU.

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