Baidu.com, Inc. (ADR) (NASDAQ:BIDU) Closes At 3-Month Low
Baidu.com, Inc. (ADR) (NASDAQ:BIDU) continued to slide on Friday and ended lower by 2.32% near to 3-month low of $130.02, as the stock fell below its 200-Day Moving Average of $132.82. The stock market experienced a worse trading week as stocks in almost all the sectors fell due to a lower than expected second quarter earnings guidance issued by companies that had reported a better than expected first quarter 2012 earnings.
S&P 500 index (SPX) of technology shares fell 3.8% on a lower-than-expected outlook announced by companies like Juniper Networks (JNPR), Qualcomm (QCOM), Lexmark International (LXK) and even Apple (AAPL). Standard & Poor’s 500 Index was down 2.4% to 1,369.10 at the end of the trading week. The Dow Jones Industrial Average slipped 190.04 points, or 1.4%, to 13,038.27.
Following its earnings recently, shares slid to intra-day low of $128.94, but quickly rebounded to above its 200-Day MA. Moreover, the stock never closed below $130 level since Feb 08, 2012.
There are reports from local marketing and entertainment website mUmBRELLA.com, that the company will set up a new office in Australia. Dean Capobianco, a former director of sales at Yahoo! Inc.’s local search marketing unit will help in an advisory role, the report said.
The stock started the year very well and rose to $152 form $115 before the earnings. The stock witnessed a 10% slide before earnings as of Apr 24, 2012 and closed at $135.83 on that day. Post earnings, investors reacted negative initially as the company projected light revenue for the current quarter, and the stock gapped down by about 6%, but later on recovered most of its losses at the end of the day.
The company posted net profit of $299.0 million, up 75.90% year-over-year. On per share basis, the company earned 87 cents a share, ahead of analysts’ estimates of 84 cents a share. Revenue during the quarter jumped 75% year-over-year to $677.1 million, in-line with analysts’ estimates of $677.51 million. Operating profit during the quarter surged 75.10% to $332.1 million.