Is Baidu's Stock Finally Ready to Rebound?
Baidu's (NASDAQ: BIDU) stock popped after the Chinese tech giant posted its first-quarter earnings on Monday. Its revenue declined 7% annually to 22.5 billion yuan ($3.2 billion) but beat expectations by $90 million.
Its adjusted net income jumped 219% to 3.1 billion yuan ($435 million), or $1.25 per ADS -- which crushed expectations by $0.69. Its adjusted EBITDA, which excluded certain one-time gains and losses, rose 61% to 2.9 billion yuan ($403 million).
Baidu expects between a 5% loss and a 4% gain in annual revenue growth in the second quarter. That's a broad range, but it suggests the company passed a cyclical trough in the first quarter. Its profit growth also suggests its dependence on iQiyi (NASDAQ: IQ) isn't denting its margins.
Source Fool.com
