bai-boo

Came in to work today and when I saw my stock ticker, I almost had a heart attack. Baidu had dropped 10%. I looked up news of the company, fearing that the world was falling apart (at least in China).

Appropriately enough, the headline of the first article I read said something along the lines of "Baidu collapses." I read further, and found out that Baidu reported soaring profits. In fact, the company's earnings per share of $0.45 beat analysts' estimate of $0.36. So why the drop?

The company lowered their forecast for Q1. This apparently, was the third such disappointing guidance in a row, and that caused a couple of brokers to cut their ratings (one went to reduce, the other to sell) on the company. Damn Wall Street.

Voice in head says, "Buy AND hold, buy AND hold." =)