Baidu Earnings:
3 Things to Watch
Short-Term Investors
Short-Term Investors
Revenue: $1.92 B
FY 2014: $7.82 B
EPS: $1.32
FY 2014: $5.22
Wall Street
Expectations
Short-Term Investors
• It’s important to understand that while Baidu is
growing revenue by leaps and bounds, earnings
are ...
Medium-Term Investors
Medium-Term Investors
Many will closely
follow the
company’s total
paid clicks and cost
per click metrics.
Advertising Cli...
Medium-Term Investors
Generally, as more mobile ads are displayed, cost per
click (CPC) goes down, as the total number of ...
Long-Term Investors
Long-Term Investors
The Chinese
Internet is quickly
changing. Baidu
needs to maintain
dominance in the
mobile and PC
searc...
Long-Term Investors
Baidu once had a commanding 80% market share
of China’s PC search market. Qihoo has taken as
much as 2...
You don’t necessarily need to invest in Chinese companies to profit from the
world’s second-largest economy. Apple, for in...
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Baidu Earnings: 3 Things to Watch

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China's largest search engine makes up a huge portion of my retirement portfolio. Here are three things I'm watching when the company reports.

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Baidu Earnings: 3 Things to Watch

  1. 1. Baidu Earnings: 3 Things to Watch
  2. 2. Short-Term Investors
  3. 3. Short-Term Investors Revenue: $1.92 B FY 2014: $7.82 B EPS: $1.32 FY 2014: $5.22 Wall Street Expectations
  4. 4. Short-Term Investors • It’s important to understand that while Baidu is growing revenue by leaps and bounds, earnings are expected to jump by more modest amounts. • This is because the company is investing heavily in mobile and app platforms that should drive both revenue and profitability for years to come.
  5. 5. Medium-Term Investors
  6. 6. Medium-Term Investors Many will closely follow the company’s total paid clicks and cost per click metrics. Advertising Clicks
  7. 7. Medium-Term Investors Generally, as more mobile ads are displayed, cost per click (CPC) goes down, as the total number of paid clicks goes up. • In 2013, paid clicks increased 33%. The company usually only makes vague comments on paid click increases in quarterly conference calls. • In the fourth quarter of last year, CPC on mobile devices was about 60% of what it was on desktop. Management should comment on this in the conference call, and investors should hope this number moves ever-higher.
  8. 8. Long-Term Investors
  9. 9. Long-Term Investors The Chinese Internet is quickly changing. Baidu needs to maintain dominance in the mobile and PC search market. Total Search Market Share
  10. 10. Long-Term Investors Baidu once had a commanding 80% market share of China’s PC search market. Qihoo has taken as much as 25% of that, and Baidu now stands at 58% among PC searches. • However, Baidu still commands 73% of the combined mobile/PC search market. • As this is still primarily an advertising business, sustaining market share is vital for the decades to come.
  11. 11. You don’t necessarily need to invest in Chinese companies to profit from the world’s second-largest economy. Apple, for instance, is a U.S.-based business that does tons of business in Mainland China. Some early viewers of Apple’s newest gadget are claiming it will trump the iPod, iPhone, and iPad…combined! But one small company will be providing the technology to make it run. To find out what company that will be, click on the special free report below.

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