Baidu, Inc. | $BIDU Stock | Shares Take A Tumble On Lower Than Expected Revenue Numbers


Baidu, Inc.  (NASDAQ: BIDU)



Baidu, Inc. (BIDU), an internet search services company yesterday announced their revised revenue guidance for second quarter 2016. Baidu lowered their estimated revenues for second quarter 2016 to $2.807 billion to $2.823 billion from previous estimates of $3.119 billion to $3.192 billion.


Baidu, Inc. CEO’s Comments

“Baidu provides a strong, unique value proposition to its users and customers by helping users find whatever it is they are looking for, and connecting online marketers with those users. This role comes with great social responsibility and user experience is our top priority,” said Robin Li, Baidu’s chairman and chief executive officer. “Although a significant portion of our revenue is sacrificed, the steps we have taken to further bolster a healthy, safe and trustworthy online and offline ecosystem will result in long term benefit and reward for Baidu.”  


BIDU Technical Analysis

BIDU Chart

BIDU opened trading yesterday at $161.01 which was down from the previous days trading of $164.28. BIDU closed trading yesterday at $163.55 and crashed down after market to $154.99, equivalent to a 5% decrease from the closing price. Taking a look at the daily chart we can see the last time BIDU traded below these levels was on February 12th when it traded at $152.73 . Taking a closer look at the daily chart we can see that BIDU has been on a downward trend dating back to April 29th when it traded at $194.30. BIDU has a float of 270.33 million shares and traded 1.14 times the normal daily trading volume on Monday. For trading purposes, I would like to see BIDU open trading on Tuesday below $157.80 and if it does I would be looking to take a short position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Baidu, Inc. provides Internet search services in China and internationally. It operates through Search Services, Transaction Services, and IQiyi segments. It offers Chinese language search platform on its Website that enables users to find relevant information online, including Web pages, news, images, documents, and multimedia files through links provided on its Website; and transaction platform, including to connect online and offline services provided by third-parties. The company also provides transaction services, such as Baidu Nuomi, Baidu Takeout Delivery, Baidu Maps, Baidu Connect, Baidu Wallet, and others; and iQiyi, an online video platform with a content library that includes licensed movies, television series, cartoons, shows, and other programs. In addition, it offers auction-based P4P services; and online marketing services based on search queries, contextuals, audience attributes, media and placement attributes, and other forms; and value-added consultative services. The company serves online marketing customers, including SMEs, large domestic companies, and Chinese divisions and subsidiaries of multinational corporations operating in the retail and ecommerce, local services, medical and healthcare, financial services, education, tourism and ticketing, online games, transportation, business services, and construction and decoration industries. It sells its search and transaction services directly, as well as through its distribution network. The company was formerly known as, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People’s Republic of China.  Yahoo Finance