The $300 level for Baidu’s (BIDU) may not mean much. But, it is a symbol of how far the shares have come in a short time. They closed above $300 for the first time on September 24 on their way to over $359.
Now, after yesterday’s sell off, Wall St. is dumping on the Chinese search engine. This morning Credit Suisse called the shares "underperform" and expressed concern about Q4 guidance. Baidu is barely holding $300 before the open.
Baidu started the year at $130. In may seem inconceivable that the shares could return there. But, trading at close to 70x revenue, it could happen more easily than many investors think.
Douglas A. McIntyre