Baidu stock was skewered today after an earnings report that beat analysts' estimates, but disappointed stockholders. Even punctured, the Baidu bubble is extreme. The company earned about a million dollars in the third quarter, and owns a market capitalization of 2.2-billion dollars. The most generous estimate of its per-share ernings is 7 cents, giving BIDU a P/E Ratio of 1,005. Happy days are here again.
1. Investors are also skittish about the free music and movie downloads available at Baidu. China's Napster seems destined for Federal Court. Has Metallica heard of Baidu yet?
Posted at 6:06AM on Dec 19th 2005 by Jack Roberts