Baidu Inc. (BIDU): Today's Featured Internet Loser

Date:2011-11-21zhangxu  Text Size:
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Baidu Inc (BIDU) pushed the Internet industry lower today making it today's featured Internet loser. The industry as a whole closed the day down 0.9%. By the end of trading, Baidu Inc fell $4.17 (-3.2%) to $126.93 on light volume. Throughout the day, 5.6 million shares of Baidu Inc exchanged hands as compared to its average daily volume of 8.7 million shares. The stock ranged in price between $126.05-$131.96 after having opened the day at $131.96 as compared to the previous trading day's close of $131.10. Other company's within the Internet industry that declined today were: Inc (DIET), down 20.6%, Inc (DIETD), down 20.6%, HSW International Inc (HSWI), down 12.5%, and Tudou Holdings (TUDO), down 6.8%.

Baidu, Inc. provides Internet search services. The company offers a Chinese language search platform on its Website,; and a Japanese language search platform on its Website, Baidu Inc has a market cap of $48.2 billion and is part of the technology sector. The company has a P/E ratio of 90.3, above the average internet industry P/E ratio of 67.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 35.8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Baidu as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

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