Option Millionaires

[jimmybob]

$BIDU from DARLING TO DEAD imho ~ think this stock goes to $80 in short order.. WILL PLAY ACCORDINGLY ~

Baidu.com, Inc. (ADR)(NASDAQ:BIDU) shares fell Tuesday morning after Wallace Cheung, an analyst at Credit Suisse, cut his rating on the stock from ‘Neutral’ to ‘Underperform’, thereby setting a new price target of $83, down from $118.

This is the most recent in a sequence of cautious analyst notes on Baidu in recent weeks, involving downgrades from Jefferies and Raymond James.

Cheung has written in a research note that expectations from Baidu are likely to slide down under the present circumstances, mobilization challenge on mobile phones and a weak ad market. He cut estimates for both 2013 and 2014.

Among other factors, Baidu shares have been under tremendous pressure from growing concerns about loss of market share to the principal Web browser provider in China, Qihoo 360 that lately entered the Internet search market.

Regarding the mobile device issues, he says that mobile search already covers more than 30% of search traffic for Baidu growing to a likely 50% in third quarter of 2013. However, he also said that the firm generates only 2-3% of total revenue from mobile search.

He wrote that Baidu had benefitted from Google’s exit from China in first quarter of 2010. However, the dominance of Baidu seems to be waning.