Back in the 1990s, an IPO that surged more than 100% on its first day was considered, well, ho-hum. There was even a name for it: moonshot.

Last week, we got some of the old-time-IPO magic again with the debut of the Chinese search engine Baidu (NASDAQ:BIDU). The stock surged 354% to $122.54 on Friday.

True, just about every analyst thought this would be a hot one. But not many imagined it would be this spectacular.

No doubt, traders made a lot of money last Friday (and it looks like they are churning things again today). With only 4.06 million Baidu shares on the open market, it does not take a lot to move the stock. But the stock could easily fall as traders take their winnings off the table. After all, Baidu opened at $66 and posted 375% gains.

In a recent piece for The Motley Fool, I analyzed the fundamentals of Baidu. It is a pioneer in Chinese search, understands how to deal with the intricacies of Chinese advertisers, and has cutting-edge technology (after all, the Chinese language is complex).

But the fact remains: Baidu is a tiny company -- especially in light of its mega market cap of $3.92 billion. Last year, Baidu posted $13.4 million in revenues and a profit of $300,000.

Interestingly enough, Baidu's leadership position is not clear. I investigated Websidestory (NASDAQ:WSSI), which is a Web analytics firm, and according to its most recent statistics, the market share for search in China is Google (NASDAQ:GOOG) at 56.65%, Baidu at 32.31%, and Yahoo! (NASDAQ:YHOO) at 7.03%.

And to an extent, this has the power to put a strain on Baidu's model, as the emergence of Microsoft (NASDAQ:MSFT) and others' presence will in some way put downward pressure on ad prices. In addition, uncertainty over the rate of growth in Internet traffic in China might act as something of a double whammy, which might also reduce the company's ability to command premium pricing for ad placements.

Also, if you look back at the dot-com boom, many of the one-day megaperformers proved to be terrible investments. Heard of any of the following (the top five IPOs of all time): VA Software, Theglobe.com, Foundry Networks, webMethods, and FreeMarkets?

One of the biggest beneficiaries of the Baidu IPO is, ironically enough, Google, which owns 2.6% of the company. That's worth about $101 million.

But, for investors, a way to play Baidu may be to buy one of its lead underwriters, Goldman Sachs (NYSE:GS). It will make a bundle from this IPO (given that it has the right to buy shares at the offering price of $27). And it certainly appears that IPOs are staging a comeback. Actually, it looks like this will be the most active August for the IPO market since 2000. Many IPOs have been pricing strong, and there is an expectation of more filings for the rest of the year.

Fool contributor Tom Taulli does not own shares mentioned in this article.