Stock of the Day: Baidu, Inc. (BIDU) Print
Stock of the Day - Daily Article
Written by MsEconometrica   
Monday, 25 July 2011 23:43

Baidu, Inc.(BIDU) is a Chinese web services company which is also called “the Google of China”. One of the world's top search engine experts Robin Li founded Baidu on January 18, 2000, in China. Baidu has  turned into China’s largest search engine, with over 80% market share by its Co-Founder, Chairman and CEO Robin Li. Baidu, Inc. listed on the NASDAQ stock exchange in 2005, and became the first Chinese company to be included in the NASDAQ-100 index in 2007. Baidu is also known as the second largest independent search engine in the world now. BIDU has  appeal to Chinese users. As a result, of the probability of Google’s prohibition in China because of the censorship; it seems that Baidu will be the world’s largest Internet search engine on the market. Baidu provides an index of more than 10 million multimedia files, 750 million web pages and 80 million images. Baidu offers wireless application protocol (WAP), multimedia content; including MP3 music and movies, personal digital assistant (PDA) based mobile search. The most important feature of Baidu, Inc. is the service “WENKU” that provides to find any document easily even though you cannot find in Google. Baidu has reached agreement with three major international music studios and accelerate its growth. After all of these achievements; Robin Li has been designated as “Best Business Leader in the World”, “China’s Most Influential Business Leader” and “World’s Most Influential People”  by BusinessWeek, Fortune Magazine and Time Magazine.

Let’s look at the company’s financial analysis. Baidu, Inc. has a market cap of $54.60 billion. BIDU has an impressive P/E ratio of 85.54 and forward P/E ratio of 39.13. Analysts expect BIDU to have a 49.48% EPS growth in the next 5 years. For the second quarter of 2011, Baidu reported total revenues of $528.4 million, representing a 78.4% increase from $282.3 million for the same quarter of 2010. When the second quarter of 2010 compared to the same period of 2009, there was a 74.4% increase in total revenues. After announcing these tremendous results, Robin Li said: "Baidu had another excellent quarter, as we benefited from strong traffic growth and improved monetization." With the rising number of Chinese Internet users, the Internet information provider business in China seems continue to grow. As a result of this, Baidu will continue to have excellent quarters. On July 25, 2011, sharesof Baidu has set a new 52-week high of $157.33. It was not a massive surprise, because BIDU has been on an upward trend for over a month. BIDU is also one of Jim Cramer’s recommended stocks.

Last Updated on Wednesday, 03 August 2011 02:19