Baidu Baidu closed the week at an all-time high of $134.92 on Friday, March 25, 2011. BIDU was up +11.97% for the week, is up +11.36% for March, and is up +39.77% for 2011. This follows +11.53% for February and +12.53% for January.
S&P 500 By comparison, the overall market, the S&P 500, at 1313.80, was up +2.70% for the week, is down -1.01% for March, and is up +4.47% for 2011. SPX is +94.20% since the March 9, 2009 market cyclical low. SPX closed at a multi-year closing high of 1343.01 on Friday, February 18, 2011, the highest close since the June 17, 2008 close of 1350.93. BIDU is outperforming the overall market in 2011. A review of the S&P 500
is here [S&P 500 Regains 1300! (Chart) *Above 20 & 50 day averages*].
Baidu Fundamentals Baidu reported stellar fourth quarter 2010 financial results on January 31, 2011. These financial results are reviewed and analyzed on this blog at the Baidu Financial Performance page.
Baidu Daily Chart Below is the BIDU daily chart since January 31, 2011, the day before Baidu reported stellar Q4 2010 earnings and gapped up. This is to illustrate all recent price interactions.
Noteworthy Closing Prices
Current Close: $134.92
2011 and All-Time High: March 25 $134.92
2011 Low: January 3 $99.73
YE December 31, 2010: $96.53
Baidu Chart Review
Intermediate Term Trend ascending 25d sma > ascending 50d sma, bullish
Long Term Trend 10 month ema = 102.37, bullish
Resistance (at all-time closing high), 3-24-11 intraday high 135.00, 3-25-11 intraday high 136.49
Support prior all-time closing high 129.58, 125, 20 day avg 123, 50 day avg 119
Moving Averages above 20d, 25d 50d, 100d, 200d sma's
RSI 14 Day = 77.62 is overbought, ascending
RSI 28 Day = 55.44 is reasonable, ascending
MACD (12,26,9) = +1.18, ascending
Volume high 9.3M latest day, 20 day avg = 6.3M , 50 day average = 6.97M
Price Earnings Ratio = 87.64, has been high 90s to low 100s in past year
Market Capitalization = $47.02B (Yahoo Finance)
Conclusion Baidu has rallied to an all-time high and has outperformed the overall USA equity markets in 2011. Baidu reported incredible financial results on January 31, 2011 for the quarter ended December 31, 2010.
Disclosure We are long BIDU.
Baidu, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs, each of which represents one Class A ordinary share, currently trade on the NASDAQ Global Select Market under the symbol "BIDU".
The Baidu Story
Many people have asked about the meaning of our name. "Baidu" was inspired by a poem written more than 800 years ago during the Song Dynasty. The poem compares the search for a retreating beauty amid chaotic glamour with the search for one's dream while confronted by life's many obstacles. "…hundreds and thousands of times, for her I searched in chaos, suddenly, I turned by chance, to where the lights were waning, and there she stood." Baidu, whose literal meaning is hundreds of times, represents persistent search for the ideal.
Baidu chose a poetic Chinese name because it wants the world to remember its heritage. As a native speaker of the Chinese language and a talented engineer, Baidu focuses on what it knows best - Chinese language search. Applying avant-garde technology to the world's most ancient and complex language is as challenging as it is exciting. At least people here at Baidu think so. As having diligently disclosed in the Prospectus of our recent Initial Public Offering, we believe there are at least 38 ways of saying "I" in Chinese. It is important that we master all the ways of addressing oneself in Chinese because our users depend on us to address every one of their daily queries. And trust us, pin pointing queries in the Chinese language is an art rather than a science.
Our mission is to provide the best way for people to find information. To do this we listen carefully to our users' needs and wants. Have we collected all the Chinese web pages they want to see? Are the pages current and up to date? Are the search results closely related to their queries? Did we return those search results instantly? To improve user experience, we constantly make improvements to our products and services. For example, we introduced "phonetic" or "pin-yin" search which allows our users to type in Chinese keywords using English alphabets. This feature is designed to skip the switching from English inputting to Chinese inputting and for when the user is not sure of the written form of a keyword. Our users definitely notice the many little things that we do differently to ensure a simple and reliable search experience every time.
In addition to serving individual users, we also serve as a media platform for online marketing customers. We not only provide our customers easy access to one of the largest online audiences in China but also targeted groups with defined interests as indicated by queries. Unlike traditional online advertising services which charge by flat fee, our marketing products and services are performance based. Our Pay for Performance model has taken the market by storm because it is cost effective and measurable.
We know that a lot of interesting things are going on in the Internet space, but we don't want to lose focus. China's Internet search industry is only a newly discovered territory. We see vast untapped grounds in our home base and we believe there are still plenty of prizes to be claimed by the best players.
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