Baidu Investors Will Have to Wait

Baidu is set to report quarterly results later this month.

Feb 6, 2014 at 7:00PM

Investors hoping to hear Baidu (NASDAQ:BIDU) discuss its fourth-quarter results this week are out of luck. The leading Chinese search engine announced this morning that it will announce its latest financials on February 26. 

It may seem late. Many financial outlets had Baidu reporting fresh numbers earlier this week. A 24/7 Wall St. article argues that the late report may indicate that something's wrong.

That isn't likely the case. Baidu never offered up February 4 as its release date. That's just stateside services estimating reporting dates based on historical patterns. It's the same date that Baidu went with last year, making it a reasonable ballpark estimate. In retrospect, it wasn't a reasonable target at all. We're smack dab in the heart of the Chinese New Year holiday. Chinese equity markets have been closed since Thursday of last week and will remain closed until next week. Baidu trades as a stateside-listed ADR, but it naturally isn't going to speak up while China is on holiday.

China's holiday is based on the lunar calendar, and that means that the holiday fluctuates between late January and early February. Depending on where it lands in any particular year, Baidu tries to get in ahead of the festive week or to wait until after the holiday's over.

That being said, February 26 will be the latest that Baidu has ever reported its fourth quarter numbers. Baidu reported on February 16 two years ago, and it was February 18 in 2009. The latest report came on February 21 in 2006, Baidu's first fourth quarter as a public company.

Given a year that was loaded with acquisitions and new ventures, can we really blame Baidu for taking its time here? 

As it stands, it should be a good report. Baidu offered up guidance in late October, calling for revenue to grow 45.5% to 49.6% for the period. That compares favorably to Google (NASDAQ:GOOGL) and Yandex (NASDAQ:YNDX), the other two publicly traded companies that rely on paid search for the lion's share of revenue. 

Baidu is expected to grow faster than the 22% rate that Google posted last month. Russia's Yandex is expected to grow quarterly revenue at a healthier 39% spurt when it reports earlier this month, but that also pales in comparison to Baidu's accelerating growth.

Naturally, we'll have to wait and see how much of Baidu's healthy top-line growth works its way down to the bottom line. It's been investing in growth, including high-traffic niches that have inferior margins. However, there are things far worse than waiting for fresh financials -- and worrying about the wait itself.

3 more stocks that are growing at impressive rates
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Yandex. It recommends and owns shares of Baidu and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information