Thoughts on BIDU (Baidu.com)?

DaveinJapan said: "What does everyone think of this stock? Doing a little comparison, it looks like the growth is phenominal and far surpasses Yahoo and even Google! However, the stock recently tanked after the last earnings report, which I don't really get based on the numbers I researched. Thoughs?"

Heather said: "Baidu has around 44% of search ad market in China, more than both Google and Yahoo combined."

JohnL said: "I think it is way too expensive."

DaveinJapan said: "I thought it was expensive too (based on the astronomical PE, right?), but looking at Google it's "expensive" too...seems like the premium is based on growth potential right? And, Baidu seems unstoppable growth-wise right now. Of course, that could all change if Google or Yahoo set their minds to conquering the Chinese market. As for expensive, it sure has exploded up and down over the year (high of around $150, low of $44, now trading around $80). Anyone else have some insights. I've very curious about what makes this stock tick."

JohnL said: "Ultimately the problem I have with Baidu is the P/E is simply [I]too[/I] high. Google's P/E is only 1/3 of Baidu's and Baidu faces stark competition if Google, Yahoo and others enter the Chinese search market. The stock trend is downward...the problem being the stock attempted to reach its open IPO price but failed and then tanked. That's a pretty bearish sign if you ask me. Ultimately, I think the real issue here is twofold: 1. Is Baidu worth the risk? and 2. Are there better, safer, more profitable ventures I can put my money into? I think the answer to the former question is "No" and the latter is "Yes." At $80 a share with a stratospheric P/E, is there really room for this stock to grow at a rate you might find elsewhere?"

zaurm said: "right now looks pretty attractive to me...maybe OK time to buy it now! Returned to $100 from $130"

DaveinJapan said: "Funny you should bring this up. I almost bought it again last week when it sunk down into the mid-90's, but didn't because the Chinese stocks are so volitile right now. I would tread carefully, in any case. Baidu might rise some more, but I doubt it'll be seeing $130 anytime soon, and could see more downside in the meantime. Just my 2 cents. Good luck! :)"