China, Emerging Markets

Ryan Soh 苏祥发

Equity Bottom-Up

Baidu's good Q2 results signal a climb towards a 45%+ upside, but risks remain<a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179:1">Baidu</a> had a good Q2 - it <a href="http://ir.baidu.com/phoenix.zhtml?c=188488&amp;p=irol-newsArticle&amp;ID=2289721" target="_blank">beat</a> earnings expectations by 56%, and grew revenue, operating income and net income by 14%, 47% and 83%. Consequently, the stock traded up 9.45%, on the last Friday of July this year, comfortably beating whatever benchmarks set before it.The main reason it did well this quarter is because it managed to cut costs, and the market missed this - revenues were <a href="https://markets.ft.com/data/equities/tearsheet/forecasts?s=BIDU:NSQ" target="_blank">broadly in line</a> with analyst…

Baidu's good Q2 results signal a climb towards a 45%+ upside, but risks remainBaidu had a good Q2 - it beat earnings expectations by 56%, and grew revenue, operating income and net income by 14%, 47% and 83%. Consequently, the stock traded up 9.45%, on the last Friday of July this year, comfortably beating whatever benchmarks set before it.The main reason it did well this quarter is because it managed to cut costs, and the market missed this - revenues were broadly in line with analyst…

Baidu

Thinking Through Baidu's Q2