Baidu shares drop 6 percent after executive's comments to Reuters Summit
12.15.2010
Shares of Chinese Internet search firm Baidu fell 6 percent to a seven-week low on December 15 after a top executive exclusively told the Reuters China Investment Summit that Baidu will not be able to keep up its strong growth rates seen this year in 2011, due to a larger comparison base amongst other reasons.Baidu, which is trading near record highs and at a PE of 90, is the darling stock of hedge funds. The stock is the only Asian name in the top 100 holdings of the world’s 30 biggest hedge funds in the third quarter, according to Reuters data. After Senior Vice-President Shen Haoyu’s comments to the Summit, Baidu’s option volume also surged 3.6 times the typical levels. Bloomberg did a story on Baidu’s share move citing the Reuters interview and quoted from it. The story was also picked up by Barron’s blog, Schaeffers Investment Research, StreetInsider and Forexpros, among others.
