Fri, Mar. 27, 2:20 PM
- Qunar's (QUNR +6.3%) post-earnings rally has refused to let up. Shares are now up 41% since China's #2 online travel firm beat Q4 estimates and issued strong Q1 guidance on March 16.
- With Qunar now sporting a $4.9B market cap, shares go for nearly 10x a 2015 revenue consensus of $492.6M. Majority owner Baidu (NASDAQ:BIDU) has to be pleased with the jump in Qunar's equity value.
Wed, Mar. 25, 10:58 AM
- Baidu (NASDAQ:BIDU) and top search rival Qihoo (NYSE:QIHU) are selling off in early trading. The Nasdaq is down 0.6%, and the Shanghai exchange fell 0.8% overnight.
- Possibly hurting the companies: The health industry chamber of commerce for the city of Putian (a major healthcare services hub) has ordered its members to stop buying medical ads.
- Trader Marc Lehman observes 20% of Baidu's revenue comes from medical ads. HSBC reported last year Putian businessmen run at least 8K of the 10,877 private Chinese hospitals that existed nationwide as of Oct. '13 (per government data).
- Separately, Chinese tutoring services provider Xueda (XUE) has announced the creation of an online education JV with Qihoo. The JV, known as Sunshine Rabbit Technology, currently has less than $5M in registered capital.
- Last week, Bloomberg reported Sohu/Tencent's Sogou search unit is planning an IPO with a $3B+ valuation. That arguably reflects well on Qihoo, which had an estimated 17.3% Q4 search share to Sogou's 6.9% (Baidu was at 74.4%), and whose Web/mobile empire is assigned a total current market cap of $6.3B.
Fri, Mar. 20, 12:20 PM
- #3 Chinese search engine Sogou is planning an IPO that will feature a $3B+ valuation, Bloomberg reports. Sources add Sogou, which is controlled by Sohu (SOHU +3.7%), could see an offering in 2H15.
- Sogou has been easily outgrowing Sohu's portal and gaming ops: Its revenue rose 70% Y/Y in Q4 to $119M. It had an estimated 6.9% Q4 Chinese search share, trailing Baidu's (NASDAQ:BIDU) 74.4% and Qihoo's (NYSE:QIHU) 17.3%.
- Tencent (OTCPK:TCEHY) bought a 40.9% stake in Sogou in 2013 for $516M, and has integrated Sogou's services with its wildly popular WeChat mobile messaging platform (recently hit 500M MAUs). Aside from search, Sogou's services include a Web directory, games, and popular Chinese-language typing software (Sogou Pinyin).
Wed, Mar. 11, 6:48 PM
- Baidu Cloud OS, a custom Android ROM launched by the Chinese search giant in 2012 (and bundled with plenty of Baidu apps/services), is being shut down after seeing limited uptake. Its design team has been folded into a new (unnamed) Baidu (NASDAQ:BIDU) unit.
- Baidu's considerable success in driving the use of its apps/services on other versions of Android (as well as iOS) likely had much to do with its decision to abandon Cloud OS. Mobile accounted for 42% of the company's Q4 revenue, with mobile search traffic exceeding PC search traffic.
- Meanwhile, CEO Robin Li says Baidu might introduce an autonomous car later this year, and has been working with automakers on the project; details are scant on the car's features and test partners. Last year, Baidu announced an R&D partnership with China's BKW related to self-driving technology. Google has built multiple self-driving car prototypes, and is hoping to commercialize a model by 2020.
Fri, Feb. 13, 11:29 AM
- Shares of Baidu (NASDAQ:BIDU) have recovered entirely from their post-earnings decline as dip-buyers lift the stock +4.4%, to $213.61.
- A set of downgrades followed Baidu's light Q1 outlook: Stifel Nicolaus downgraded shares to Hold, and Brean Capital and Jefferies Group lowered price targets (to $250 and $253 respectively), but maintained Buy ratings.
- Volume on the shares has surpassed its daily average.
- More analyst outlooks
- Previously: Baidu tumbles below $200 on revenue miss, light Q1 outlook (Feb. 11 2015)
Thu, Feb. 12, 9:15 AM| 5 Comments
Wed, Feb. 11, 5:36 PM
Wed, Feb. 11, 5:12 PM
- In addition to missing Q4 revenue estimates (while slightly beating on EPS), Baidu (NASDAQ:BIDU) is guiding for Q1 revenue of RMB12.645B-RMB13.065B ($2.038B-$2.106B), below an RMB13.62B consensus. Guidance reflects "the combined impact of both the late timing of Chinese New Year this year and mobile's growing traffic contribution, which monetizes at a rate lower than that of PC."
- Mobile rose to 42% of revenue in Q4 from 36% in Q3. Online ad customers rose 16% Y/Y but just 1.4% Q/Q to 523K; revenue per online ad customer rose 26.3% Y/Y but just 1.9% Q/Q to $4,255.
- Traffic acquisition costs rose to 13.4% of revenue from 12.9% in Q3 and 12.3% a year ago (mobile, hao123 portal promotions, and contextual ads were responsible). SG&A spend soared 89.2% Y/Y to $568M, and R&D spend 69% to $344.2M.
- BIDU -8.1% AH to $197.26.
- Q4 results, PR
Wed, Feb. 11, 4:36 PM
Tue, Feb. 10, 5:35 PM
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Wed, Feb. 4, 1:22 PM
- China's Leiphone reports Baidu (BIDU +0.3%) is investing over $100M in Fancy Maker, a new Lenovo (OTCPK:LNVGY) brand (first announced in October) created to take on Xiaomi and Apple in the Chinese smartphone market.
- Like Xiaomi, Fancy Maker (begins operations in April) will rely on online sales and viral marketing. As Marbridge Consulting observes, Fancy Maker will likely agree to pre-install Baidu's mobile apps/services as part of a deal; Qihoo's recent $409M investment in a JV with Chinese Android OEM Coolpad features such terms.
- IDC estimates Xiaomi had a 5.3% Q3 global smartphone unit share (211% Y/Y unit growth), and Lenovo a 5.2% share (38% unit growth). With Motorola Mobility on the books, Lenovo estimates it had a 6.6% share in calendar Q4, with ~60% of its phone sales coming outside of China.
- Baidu's Q4 report arrives on Feb. 11.
Fri, Jan. 23, 12:15 PM
- Baidu's (BIDU +1.1%) Q4 report will arrive after the close on Wednesday, Feb. 11. CC at 8PM ET.
- Consensus is for revenue of RMB14.14B ($2.27B, +48.5% Y/Y) and EPS of RMB9.89 ($1.59). Shares +3% since the Chinese search giant provided mixed Q3 results, slightly soft guidance, and strong mobile metrics on Oct. 29.
- Deutsche recently offered positive pre-earnings commentary, and Brean did the same a few days later.
Wed, Jan. 21, 2:55 PM
- Alibaba (BABA +3.5%) and Baidu (BIDU +3.6%) have posted big gains in U.S. trading after the Shanghai Composite rose 4.7% overnight (its biggest gain in 5 years). China's other Internet giant, Tencent (OTCPK:TCEHY), hasn't been left out of the fun: Its shares rose 3.8% overnight in Hong Kong, leaving the company sporting a $155B market cap.
- Baidu recently received positive pre-earnings commentary from Deutsche, which argued mobile monetization is improving rapidly. The firm observed Baidu hiked the minimum bid price for mobile keywords as a % of PC keyword prices to 30% from 10%, and suggested Baidu's alliance with fast-growing Android OEM Xiaomi could provide a boost. Mobile accounted for 36% of Baidu's Q3 revenue, and a majority of its traffic.
- Alibaba, which also rallied yesterday, is eight days away from posting its FQ3 report. The consensus is for 47% Y/Y revenue growth, but only 24% EBITDA growth, as investments in new businesses and mobile marketing pressure margins.
Dec. 17, 2014, 4:54 AM
- Confirming a report from last week, Baidu (NASDAQ:BIDU) says it has bought a stake in Uber.
- The pair said they would collaborate to expand Uber's presence in China, where it lags far behind Kuaidi Dache and Didi Dache, two domestic car-hailing apps backed by Baidu's rivals Alibaba and Tencent.
- The companies didn't disclose how big a stake Baidu was taking, although China National Radio reported on Friday that it may be worth as much as $600M.
- Previously: Report: Baidu buys stake in Uber (Dec. 12 2014)
Dec. 15, 2014, 5:38 PM
- Nokia's (NYSE:NOK) Here unit will power Baidu's (NASDAQ:BIDU) PC and mobile mapping services outside of China. The solution will cater to Chinese tourists traveling abroad.
- With Baidu's search services squaring off against Google's in non-Chinese markets, it might have been more comfortable partnering with a third party. The Baidu deal comes shortly after Nokia made Here's Android app available to all; it was previously offered only to Samsung users. An iOS app will launch in 2015.
- Separately, Nokia has announced Bernard Najm, an 18-year company vet, is its new Middle East/Africa chief. Najm succeeds Igor Leprince, who was recently named the company's Global Services chief.
Dec. 12, 2014, 4:54 AM
- Despite coming under fire across the globe this week, Baidu (NASDAQ:BIDU) is buying a minority stake in Uber, giving the ride-sharing giant a boost as it expands in China.
- The investment may be worth as much as $600M, Bloomberg reports quoting China National Radio.
- Earlier this month, Uber raised $1.2B in a new round of funding that valued the company at $40B.
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