Has Baidu's Stock Finally Bottomed Out?
Shares of Baidu (NASDAQ: BIDU) recently popped after the Chinese tech giant posted its third-quarter numbers. Its revenue stayed flat year-over-year at 28.1 billion yuan ($3.93), but beat estimates by $40 million. Excluding its upcoming divestments of several non-core businesses, its revenue rose 3%.
Baidu's non-GAAP net income fell 35% to 4.4 billion yuan ($614 million), or $1.76 per ADS, but still beat expectations by $0.60. On a GAAP basis, which excludes its stock-based compensation expenses and impairment charges, it posted a net loss of 6.4 billion yuan ($892 million), compared to a profit from 12.4 billion yuan a year ago. Those growth rates look dismal, but a closer look indicates that Baidu's ongoing declines are finally bottoming out.
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Source Fool.com
