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(BIDU) Baidu profits up 142.6% and revenue up 103%! April 26, 2007

Posted by deminvest in BIDU Baidu, growth stock, Internet stocks, investment, nasdaq, Nasdaq stock, Single stocks, stock I own, stocks.


Baidu sails like a bullet pushed by powerful winds of Chinese Internet growth!


BAIDU enjoyed a record growth on First Quarter 2007. BIDU stocks are up 20% in after-hour trading. The Chinese search engine is once again growing faster than its giant competitor Google.

Tomorrow there will be fireworks on Nasdaq traded BIDU stock. Maybe the enthusiasm will bring some momentum to Google shares too. There is harsh competition between Google and Baidu in China. Google reached yesterday a very important agreement to sell ads on China Telecom’s 200 websites.

I am very glad that I had bought 10 (BIDU) BAIDU stocks February 19, 2007 He He either I was lucky with BIDU, EBAY, Microsoft, CHINA, NTES, or the Nasdaq is ready to unleash its huge power on earnings that do confirm the rapid growth of World High Tech…

I am only sorry I never bought Apple which is also posting amazing results.


1. leothesuperking - April 26, 2007

$1B added market cap for $11M earning????

1999 all over again, where is Henry Blodget?

2. deminvest - April 26, 2007

so what???
If you do a little math you’ll see it makes lots of sense!

I will try to explain. Maybe you will get it:

$7M earning growth in a quarter could be annualized to 28 M earning growt… multiply times 36 and… guess what you get? $1B!

Do you understand now? On a P/E of 36 you have exactly $1B added market cap for $7M earnings increase…

It does make lots of sense…

But we should not forget this company is continuously growing and is beating expectations…

the result you mentioned ( $11M earnings) was obtained on a revenue of $35M.

Guess what? Next quarter Baidu expects revenue to grow to $50M… I believe them. You?

On this Earning-Revenue growth trend, I would expect the company to have a forward P/E = 25 (It said 35 on Yahoo finance, before those amazing results were published).

The company is actually growing cheap!

Same is happening to Google, Ebay, Microsoft, Apple.

Backward looking people like you continue with their absurd fears from the past bubble and keep Nasdaq stock prices low.

But Internet Companies are growing fast. They don’t care what old minded fearful investors say.

They are actually growing so fast that, if the Nasdaq doesn’t go up soon too, we will see them with P/E under 10 in 2 years!

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