- 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.