Tuesday, July 29, 2014

Higher Expenses Or Not, Baidu Is Cheap


Summary

  • Baidu easily exceeded Q214 earnings estimates.
  • The stock trades at a favorable valuation with multiple expansion.
  • Chinese search stocks in general remain cheap.
When last covering Baidu (NASDAQ:BIDU), the stock was under pressure due to fears over SEC bans on auditors in China. At the time in January of 2013, the stock slipped below $160 before an eventual bottom near $140 that April. Investors were encouraged to focus on mobile search growth and ignore the over flamed SEC concerns. Fast-forward to today and the stock is surging beyond $225 based on fast mobile growth. The crazy part is that investors might not be too late to invest in this story.

Read the full article at Seeking Alpha.


Disclosure: Long BIDU. Please review the disclaimer page for more details. 




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