Baidu.com, Inc. (ADR) (BIDU) Feeds the Bad News Bears – Qihoo 360 Technology Co Ltd (QIHU), Groupon Inc (GRPN)

Page 1 of 2

Baidu (BIDU)The bears are piling up on Baidu.com, Inc. (ADR) (NASDAQ:BIDU) .

A whopping 10.6 million shares were sold short as of mid-February according to Nasdaq’s latest bi-monthly update. This is nearly twice the number of bearish wagers that were placed on China’s leading search engine a year ago. Baidu’s short interest hadn’t topped 9 million over the past year until now.

The worrywarts appear to be right — for now.

February wasn’t a good month for Baidu.com, Inc. (ADR) (NASDAQ:BIDU). The shares surrendered 16% of their value last month. A poorly received quarterly report early in the month didn’t help, and concerns about Qihoo 360 Technology Co Ltd (NYSE:QIHU) gaining ground since rolling out its own search platform last summer continue to linger.

Qihoo 360 reports tomorrow, and it could ding Baidu.com, Inc. (ADR) (NASDAQ:BIDU) if it has some encouraging metrics to offer up on its nascent search initiatives.

This doesn’t mean that there aren’t a lot of things working in Baidu’s favor here.

  • Baidu’s claims of Qihoo infringement — alleging that Qihoo is crawling and copying Baidu’s content — is gaining legal steam in a Beijing court.
  • The dot-com speedster now claims to be serving up 5 billion search queries a day across search, community, and partner sites.
  • Groupon Inc (NASDAQ:GRPN)‘s recent failures have soured companies on daily deals sites, but that didn’t stop Baidu from rolling out a second group-buying portal last month. Groupon may be shocking the market with its red ink, but at least Baidu’s profitability has remained intact as it diversifies its model.

Then we get to Baidu’s valuation.

Baidu’s stock may be trading 44% below its all-time peak two summers ago, but the Chinese Internet bellwether is still growing at a healthy clip. The end result is that Baidu is now fetching just 17 times this year’s projected profitability and less than 14 times next year’s target.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!