Chinese search company Baidu (BIDU) made a new 52-week high of $231.64. That is not extraordinary in and of itself. But, when the 52-week low of $82.24 is taken into account, it is astonishing.
Baidu has a market cap of $7.8 billion. Revenue in the last quarter was less than $53 million. At its current stock price, Wall St. give the company a value the same as IACI. Maybe Barry Diller should move to Shanghai.
Baidu has only one real problem. Google (GOOG) cannot afford to let the little company keep its large lead in Chinese search market share. China is the world’s second largest market in terms of people online and is likely to pass the US soon.
Google is coming to get Baidu, and there is nothing the tiny firm can do.
Douglas A. McIntyre