Baidu Stock has a lot to prove this week



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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is never a bad time for extinguish a financial report rash, but it's fair to say that Baidu (NASDAQ: BIDU) He really needs some good news when he will release his second quarter results after the market closes on Monday. The leading search engine in China broke down the radar of growing investors, with a horrendous stock chart to match. Baidu (NASDAQ: BIDU) He really needs some good news when he will release his second quarter results after the market closes on Monday. The main Chinese search engine broke the radar of growing investors, with a horrendous stock market chart.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Baidu stock hit another six weeks low Thursday, and shares have sold nearly two-thirds of their value since the peak reached last spring. A strong, even reasonable, quarter could go a long way in setting a floor for the stock. "Data-reactid =" 12 "> Baidu's stock hit its six-week low on Thursday, and equities sold nearly two-thirds of their value since the peak reached in the spring of 2006. A solid quarter, even reasonable, could go a long way towards setting the floor of the security.

Baidu has to deliver Monday night. Investors who have suffered the sharp drop of 66% of the stock over the past 15 months need a break. The problem is that Baidu is not the same stock of growth as it was at its peak.

Baidu researchers with thumbs up in front of the Baidu logo.

Searching for images: Baidu.

Break things

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Investors do not stand up much to Baidu, turnover is expected to increase by 1% to 6% if you cancel the assets sold in the last year.We are far from the 15% growth announced and 21% increase on an adjusted basis of & nbsp;his previous quarter, and even these results have left the market claiming the market for Baidu's glory days. "data-reactid =" 27 "> Investors do not care much in the upcoming report.The growth of turnover in published data and a simple advance of 1% to 6% if you cancel the assets transferred to the Over the past year, we are nowhere near 15% and 21% growth on a prior-quarter adjusted basis, and even these results have left the market clamorous for Baidu's glory days, with more bursts of important.

Online advertising has contributed significantly to Baidu's leading position in China in the paid search sector, but the slowing economy is pushing marketers to reduce the amount of their willingness to pay for online leads . Baidu's premium video platform is growing considerably faster than its search engine, but it is still too small to physically move the needle.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This also does not help La's margins online video and other areas of Baidu's long-term goal are not as juicy as the research, which has the effect of reducing overall margins.In short, as tough as the situation, the situation will be even more ugly at the other end Analysts see adjusted earnings of 0.87 USD per share, well below the $ 3.18 he posted a year ago. & nbsp; "data-reactid =" 29 "> This also does not help the fact that the margins of online video and other areas of Baidu's long-term goal are not as juicy and research, reducing overall margins.In short, analysts see adjusted earnings of $ 0.87 per share, well below the $ 3.18 posted a year earlier.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The background is dark for those who have a period of time Reduced Patient investors have achieved good results by buying when the stock is down Volatility comes with the territory, and analysts accept it Even some of the Wall Street pros who have recently reduced their price targets are stick to their previous bullish valuations on the stock. Baidu's current situation and realistic short-term expectations have been tempered by the slowdown in the economy and rising trade tensions, but there is still much to be done for a former dot-com trader at his best. low level for more than six years. & Nbsp; "data-reactid =" 30 "> The backdrop is bleak for people whose turnaround time is limited, but patient investors have done well by buying stocks when the stock is down. the territory, and analysts accept it, even some The street professionals who have recently reduced their price targets are sticking to their previous bullish notes.Beidu's current situation and its realistic expectations in the short futures have been tempered by the slowing economy and rising trade tensions, but there is plenty of potential for an old-com sweetheart trading to its lowest level in over six years.

Baidu is not likely to surprise the market with an excellent report, so remove it from the table. The keys to raising equities higher this time are somewhere in the high-end forecast, rebounding from the previous quarter's results missed by at least the profit targets of analysts, and – perhaps still more important at this point – offering tips that shows a bit of light at the end of the tunnel.

The stock is not a price for greatness, so Baidu does not have to be great. Just convince the market that its level is at its lowest. And it will not be an easy feat for Baidu.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Rick Munarriz has no position in any of the actions mentioned. The Motley Fool owns shares and recommends Baidu. The Motley Fool has a disclosure policy."data-reactid =" 34 ">Rick Munarriz has no position in the mentioned actions. The Motley Fool owns shares and recommends Baidu. Motley Fool has a disclosure policy.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was originally published on Fool.com"data-reactid =" 35 "> This article was published on Fool.com

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