Big news coming Friday if everything works out well. I’ll keep everyone updated. Also the growth on the Prime Pick is ridiculous. It was barely doing 40 views a day last month, and now it’s doing close to 200 a day since we changed to Primepick.net. Thank you so much for the support!
I wanted to write about Baidu [Ticker: BIDU] the day it crashed to $178 from $194, but I held off until I was certain it was done falling. Well it’s done now and it’s actually looking like it’s ready to skyrocket back to its appropriate price.
First let’s talk about why Baidu fell from $194 on April 29 to it’s current price of $167. A college student in China went to go meet a doctor that he found off of Baidu for cheap, and ended up being raped and killed brutally. The Chinese people were up-in-arms, the media spun the story out of control, and the government reprimanded China. When the west heard of it the stock nosedived faster than a plane with a broken engine.
Fortunately the Chinese know what they’re doing and Baidu issued a very impressive public apology in which Baidu CEO Robin Li called for the company to refocus from being completely profit driven to focussing more on quality content and to put ‘values before profits’.
The market eventually responded to Li’s pleas and Baidu hit rock bottom on Friday. Today (May 16), it shot up $8. The stock is extremely profitable and it has to correct back to its appropriate price eventually. A slew of strong buy recommendations and reaffirmations from firms also carried the stock.
Baidu also flared to $205.00 in post-market trading today, and while it may not be significant, there are definitely lots of people with a good amount of money betting on it. Expect to see it rapidly get back to at least $180-ish before growth slows.
Forgetting where Baidu should be valued and all that other analysis, just look at it from a layman’s perspective. The company is almost as diversified as Google – providing just as many services as Google does.
Baidu is also partnered with BMW, and is currently producing self-driven automated cars available for sale in the Chinese city of Wuhu. This means that it’s already beaten out all of the other Silicon Valley tech giants that have been struggling in the field. The market would normally be rewarding advances like this, but combined with its unprecedented (and unnecessary) decline of more than $30, the stock is literally primed for easy pickings.
Sorry for the really short article, but there’s not much to say about Baidu except it’s easy money. It reminds me exactly of how Google was before Google absolutely skyrocketed.