| Stock (Symbol) | Stock Price | |
Baidu.com (BIDU) |
$85 |
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| Data is as of | Expected to Report | Sector |
May 6, 2013 |
July 22 |
Technology |
| Sharek’s Take | ||
 Baidu is set to become the top online video company in China with its purchase of PPS Net. Prior to the deal, BIDU’s video company iQiyi held only a 7% share of the Chinese market, far behind market leader’s Youku-Tudou 32%. This deal is similar to Google’s purchase of YouTube, and investors are sending shares of BIDU higher on the news. The stock’s $93 today (5/8) up from $85 (5/6) when this data was compiled. And speaking of data — the data keeps going down. Looking at the numbers from two days ago, BIDU shouldn’t have momentum. |
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| One-Year Chart | ||
 Wow, BIDU has really taken it on the chin the past year, it dropped from $120 to $85 as the market soared higher. Profits aren’t growing at 60% anymore. Now Estiamtes show +1% and +2% profit growth the next two quarters. Ugh. I continue to lower my fair value on this stock. |
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| Earnings Table | ||
 BIDU’s sales jumped 42% last quarter but profits grew only 12%. BIDU isn’t doing good because people are using cell phones for search, but there aren’t a lot of advertisers there.BIDU missed by 8 cents last quarter and those figures declined twice before the announcement. Annual Profit Estimates have declined for five consecutive quarters. Quarterly estimates show dismal profit growth the next three quarters. 2014 is a year of transition. |
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| Fair Value | ||
 I’m taking my Fair Value P/E from 25 to 20. This stock, which is $93 today, has little upside to 2013’s Fair Value of $101. |
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| Ten-Year Chart | ||
 BIDU used to be one of the best stocks to own. It was one of my largest holdings for years. This stock has hurt my performance recently, and I will likely use the current rally to unload more shares. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
11 of 16 |
Baidu will likely be king of the Chinese online video field, that’s pushing up the stock. But this company has bigger a big problem to overcome — how to make more money off cell phone searches. Until this puzzle is solved, fundamentals will likely look bad. |
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Aggressive Growth Portfolio
8 of 9 |
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