July 24, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Baidu (Nasdaq: BIDU ) have jumped today by as much as 12% after the company posted strong second-quarter earnings, triggering a sectorwide rally.
So what: Total revenue jumped 60% to $858.8 million, with operating profit of $443.1 million. Net income was $436 million, or $1.24 per share. On an adjusted basis, the bottom line came in at $1.26 per share. That bottom line handily beat analyst expectations.
Now what: Some other Chinese Internet companies are now also basking in the glow, including Dangdang (NYSE: DANG ) , up 12% at the high, and SINA (Nasdaq: SINA ) , up as much as 4%. The broader sector continues to benefit from increased Internet adoption within the world's most populous nation. Baidu CEO Robin Li said the company's customer base continues to expand, and CFO Jennifer Li said Baidu's long-term investments in network infrastructure and talent set it up for success at the "heart of China's Internet ecosystem."
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