Why Baidu Shares Jumped

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."

Interested in more info on Baidu? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Baidu. Motley Fool newsletter services have recommended buying shares of SINA and Baidu. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1955706, ~/Articles/ArticleHandler.aspx, 11/27/2014 2:50:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement