Keep Calm and Buy Baidu's Post-Earnings Dip

Shares of Baidu (NASDAQ: BIDU) recently fell after the company posted mixed third quarter earnings and guidance that missed analyst expectations. However, there was also a lot of confusion about Baidu's numbers -- the sales miss was minor, and many media reports misunderstood or ignored the reasons for the lower sales guidance. Let's take a look at what happened, and why Baidu's dip actually represents a great buying opportunity for investors.

Baidu's revenue rose 29% annually to 23.5 billion yuan ($3.53 billion) during the quarter, representing its strongest year-over-year growth in five quarters. However, analysts had been expecting slightly higher revenues of 23.6 billion ($3.56 billion).

Image source: iTunes.

Source: Fool.com