Encouraging financial results could also send the cynics scrambling, but that won’t be easy. Analysts see flat earnings growth when Baidu reports in three weeks, and Baidu has actually come up short in its two most recent outings.
However, bulls should still approach the growing short position as a positive. Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is now trading at a trailing earnings multiple below 20, and that drops to the mid teens if we look out to next year’s Wall Street projections.
Baidu will naturally have to earn a short squeeze, but when it happens, it’s going to be a welcome sight to see $1.5 billion in bearish wagers covering their positions.
The article Baidu Still Can’t Shake its Shorts originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu.
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