Baidu: Stuck For Now

Baidu stemmed the massive downturn due to better than expected Q2 results.
The Chinese search giant isn't predicting Q3 results worthy of a major stock rally.
The company is positioned to thrive when the Chinese economy rebounds.
The stock trades at an insane 1.5x EV/S.
Following strong Q2 results for the Chinese internet stocks focused on ad revenue, Baidu (BIDU) is likely stuck at resistance near $115. Despite the stock trading far below the $180 levels from back in April, the macro headwinds and market dynamics in internet search aren't likely to provide the growth necessarily for a stock rally until resolution of the Chinese trade war. Ultimately, the insane stock value will make one want to own Baidu on a trade war resolution.
Read the full article on Seeking Alpha. 
Disclosure: Long BIDU. Please review the disclaimer page for more details. 

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