Thursday, September 23, 2010

Baidu stock market "crazy" hidden undercurrent

Baidu listed on Nasdaq the day before yesterday, an initial public offering for sale of 404 million American depositary receipts, sold to 27 U.S. dollars to close at 122.54 U.S. dollars, up 354% transfer offer price, financing 109.1 million U.S. dollars, up 4.0 billion market capitalization dollars, is satisfied that IPO stock market five years the highest growth companies, has become the grand listing another shocked the Chinese IT companies.

The reason why Wall Street investors today to win the favor of Baidu, created 99 years since the Internet bubble was another miracle, is that U.S. investors on the development of Baidu good expectations. Since its launch in 2002 Baidu Chinese search service, the unique advantages of relying on the Chinese search technology, has been recognized by Internet users, market share, floating way up, catch up with Sohu, beat 3721, even the second quarter of 2004 and beyond Google Chinese, sit tight in the Chinese search the top spot, accounting for 33.1% of the market share of impressive performance. In addition, large groups of Internet users also given a golden opportunity to Baidu. CNNIC China Internet Agency statistics show that China's Internet users increased dramatically in recent years, and now is 115 million, accounting for 8% of the total population, such a huge market on the Chinese search services is enormous. According to statistics, the average Internet users every day with a baidu, rooted in the world's largest customer base of Baidu, the largest of its undoubted potential. Americans look at Google quickly "fortune", his outstanding performance in the stock market Jiaoren been encouraged by the overseas listed Baidu, claiming that "China's Google", directly to shorten the distance with the Americans, so that investors feel elan to an increasing prevalence of the Chinese search company Baidu stock on the pursuit of the natural and normal thing.

But Baidu results get shocked the industry, while there are many places of concern. In the first quarter, Baidu's revenue amounted to 5.2 million U.S. dollars, the profit has 30 million. The first day closing price of shares has soared and 354%, up to 2000 times competing price-earnings ratio, 66 times higher than the number of pre-, while Google stock trades at 75 times, Yahoo is only 70 times. Highlight such a high price-earnings ratio of stock market mania, the analogy a little crazy not to use too. This is the place cusp on Baidu, once a company has any sign of trouble, the stock plummeted, economic collapse, Baidu is the inevitable out of the. 99 years of the Internet bubble era, I wonder how many brilliant passing. COM company overnight out of people's attention, warning, guide for the future. How to market the high expectations to actual results, Baidu has become the most urgent task.

However, Baidu worries so much more than this. The world's largest search provider Google, Microsoft had to take the limb, won over the Chinese vice president Kai-fu Lee, president of China want any of its to increase the strength of Chinese search input could therefore evident. Just in the Chinese search market, Baidu has a firm footing for any reason guarantee not subject to capital, technology, Google, more powerful attack? Chinese search market, ranked third last year, Yahoo acquired the first Chinese search service 3721 to provide companies accelerated the pace of expansion in China, its impact can not be ignored. And some small and large portal search site search service also launched a separate piece of cake, although the moment they do not have the strength to compete directly with Baidu, but the strong momentum of development, after three years, five years later, perhaps there emergence of a new Baidu. Baidu has to face all of its competitors to snatch market share, make great efforts to consolidate its Chinese search market in the first position.

Of course, the emergence and resolution of all issues is the source of Baidu itself. Search market is a very demanding technical innovation and the market, who is a technology leader and anyone can fight to the user, the current search with Baidu in the Chinese leadership, but what happens in the future, Baidu will use the money on the stock market cycle where, yet concern. For others, Baidu has also encountered a lot of trouble. After anti-Baidu alliance, criticism of Baidu copyright infringement, pornography, under the right, if the facts established after the choice of road Baidu, choice of revenue model will need to re-positioning. Baidu will address these issues, whether a complete and mature companies in front of investors, but also the test of time.

But anyway, Baidu listed for its future success of the development of sufficient funds long as they keep excellent performance, continuing technological innovation to solve the problem well in the development process, Baidu Yi Ding Hui glory for ever, in the Chinese Internet enterprises example.

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1 comment:

  1. I found your blog on Google and read a few of your other posts. I just added you to my Google Alerts about Baidu Stocks. Keep up the great work Look forward to reading more from you in the future.