Tuesday, July 25, 2006

Baidu To Report Huge Quarter

Previously, we have speculated on Baidu Q4, 2005 here and Q1-2006 here. They turned out to be very close to Baidu's earning reports.

We also speculated about this quarter with financial analysis here. For this quarter, 23.5 million in revenue and $.22 per share earnings were predicted.

Based on what we have seen lately, we boldly predicted that the revenue will coming in around 24 to 25 million and earnings per share of $.24-25.

Even more, we believe Baidu will predicted next quarter's revenue will come in around 30 to 32 million.

There are several developments were significant.

Baidu and IBM join hands in desktop search.

Baidu Collaborate with Sony-Ericsson on mobile search.

Baidu Teams Up With SMG To Develop IPTV Contents.

Baidu will be default search for HP computers sold in China.

Hi.Baidu service announced in Baidu World Conference.

On the business side, Baidu's search advertising continues to gain market share.

At the end of May, we started to take weekly surveys of keyword pricing on Baidu's search ranking service. By the 7th week, we have seen average prices on our Huatong 140 Index jumped 10% from the initial value taken at May 29. Though the index is not a scientifically collected and influenced by the hot contests on many keywords we indexed, the uptrend is strong and clear.

For example, if you compare pricings of a few keywords between Baidu and Sohu, you will be shocked to see the 10-100 fold differences with Baidu on the higher side. Some keywords cost $3-4 US dollars on Baidu can be bought for pennies on Sohu.

We have heavily invested in Baidu and believe it is still one of the scarce fast growers out there in today's economic environment.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home