Baidu Continues Downward Spiral

BaiduAfter reporting about Baidu’s legal challenges, it appears things aren’t getting any better for China’s leading search engine. Despite the launch of a new search product, earnings estimates for Baidu continue to plummet. 

According to Tech Trader Daily, a pair of analysts have cut Baidu’s earnings forecast. Dick Wei from J.P. Morgan has cut his estimate by 5% for 2008 and by 19% for 2009 due to the reduced income Baidu can expect from not accepting income to improve organic rankings. He does, however, predict that Baidu will retain its market leadership. A slow customer growth in Q4 and state of the economy has caused Pacific Crest’s Steve Weinstein to lower his forecasts as well.

Despite this their forecasts, Baidu’s stock closed at $111.30 today – up 6.47%. But I wouldn’t recommend investing anytime soon.

  • http://franklinbishop.net/ Blog Expert

    No surprise here. You could see that they would continue the downward spiral. It just seems like there’s nothing that really can do to stop it now.

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  • http://www.tongke.net xie mo

    We know that the Internet has become the enterprises to promote products, increase the visibility of the necessary means to their business information in BtoB’s Web site to log into a lot of business after the Internet will do; At the same time, relatively well-known site in order to enrich their own Data resources, has been the find this kind of enterprise customer base continued to increase their visibility.

  • http://www.tongke.net xie mo

    We know that the Internet has become the enterprises to promote products, increase the visibility of the necessary means to their business information in BtoB’s Web site to log into a lot of business after the Internet will do; At the same time, relatively well-known site in order to enrich their own Data resources, has been the find this kind of enterprise customer base continued to increase their visibility. 5

  • http://spudmobile.co.uk/guitar-hero-world-tour.aspx George Nobles

    I not surprice because they are using very normal functions.

  • http://freeipods.co.uk Chris

    China has it’s own search engine? I thought google was top EVERYWHERE… hmm.

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  • http://www.3arn.net/ Abdul

    Huh, Baidu sickens me, it would be probably my last choice of investment!

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    As long as it continues to maintain its market share I think there is still a chance for recovery.

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