Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Hits Multi-Month Lows
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) shares have retreated sharply following the company reporting its quarterly results. Moreover, the stock has lost most of its gain it made earlier in the current year. The stock has been under pressure ever since it fell below its 200-Day Moving average price of $133.25 on May 3, 2012.
Following its earnings recently, shares slid to intra-day low of $128.94, but quickly rebound to above its 200-Day MA. Moreover, the stock never closed below $132.70 since Feb 22, 2012. Shares of BIDU were recently trading lower by 1.32% to $125.60 after hitting multi month low of $123.55 earlier in the session.
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.
Shares of BIDU are up over 7% so far this year and down over 12% over the past year. The stock needs to rebound quickly to above its 200-day MA in order to gain short term confidence. The stock may face resistance at $122.70.