Can Baidu Stock Keep Going After Last Week’s 14% Pop?
The days of sandbagging are over at Baidu (NASDAQ: BIDU), and the market’s responding by sending shares of China’s leading search engine up to fresh 52-week highs. Baidu stock climbed 13.9% last week, fueled by the posting of strong second-quarter results. A pair of analyst upgrades that followed the encouraging report obviously didn’t hurt. Baidu’s revenue climbed 14% to $3.08 billion in the second quarter, the dot-com darling’s biggest uptick in a year. The bottom line is growing even faster, with adjusted earnings soaring 98% to hit $2.36 a share for the period. Baidu has managed to beat Wall Street’s profit expectations by at least a double-digit percentage margin every single quarter over the past year. Image source: Baidu. Search party Baidu’s growth has been held back by regulations curbing its ability to cash in on once-lucrative medical-related ads. The new restrictions kicked in during May of last year, and now that we’re more than a year out, the year-over-year comparisons will be more indicative of Baidu’s organic growth. It’s targeting 27% to 30% in revenue growth for the third quarter that began earlier this month, naturally its strongest showing in more than a year. The strong showing and even heartier near-term growth…
Link to Full Article: Can Baidu Stock Keep Going After Last Week’s 14% Pop?
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