| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$89 |
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| Data is as of | Expected to Report | Sector |
February 25, 2013 |
N/A |
Technology |
| Sharek’s Take | ||
 Baidu had a big reduction in profit estimates after it reported earnings last quarter. Now annual estimates have declined for four consecutive quarters, and the stock is declining with these numbers. The problem is search is going from desktop to mobile, and while PC search is softening, there aren’t many mobile advertisers. BIDU isn’t timely right now, and I’m taking my Faur Value P/E way down from 40 to 25. |
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| One-Year Chart | ||
 This one-year chart looks terrible. Ugg-lee. P/E of 17 makes the stock cheap, but the stock’s not going to gain momentum until estimates top falling. Estimates show only 7% profit growth two quarters from now. |
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| Earnings Table | ||
 Sales and profits were great last quarter. Profit growth was 38% on a 42% increase in sales.BIDU missed by a penny, but the real news is future estimates. Annual Profit Estimates continue to weaken, especially 2014 figures. Baidu needs to figure out how to get more $ from mobile advertising, that’s why BIDU is in a Year of Transition. Quarterly estimates continue to fall and now 2013 growth looks poor. |
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| Fair Value | ||
 This stock has a P/E of only 17 and is extremely undervalued. There’s just no momentum. |
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| Ten-Year Chart | ||
 BIDU has been through corrections before — but nothing like this. There’s really no sign of the stock bottoming. 2013 profit growth is expected to be only 13%. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
5 of 14 |
Baidu is going through a year of transition where it has to get more out of its mobile advertising. Right now momentum is against this stock, but BIDU is undervalued and a turn in the tide could take this stock up appreciably. |
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Aggressive Growth Portfolio
5 of 8 |
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