3 Reasons to Buy Baidu, and 1 Reason to Sell
Baidu's (NASDAQ: BIDU) stock price fell 5.5% on Wednesday after the Chinese tech giant posted its third-quarter earnings. Its revenue rose 13% year over year to 31.92 billion yuan ($4.95 billion), which matched analysts' expectations.
Baidu's adjusted net income fell 27% to 5.09 billion yuan ($790 million), or 14.66 yuan ($2.28) per share, which still exceeded estimates by 1.71 yuan ($0.27). But on a generally accepted accounting principles (GAAP) basis, it posted a whopping net loss of 16.56 billion yuan ($2.57 billion), compared to a net profit of 13.68 billion yuan a year earlier.
Should investors consider buying Baidu's stock, which has lost more than a fifth of its value this year, after those mixed results? Let's examine three reasons to buy Baidu -- as well as one reason to sell it -- to decide.
Source Fool.com
