Baidu: Impressive Growth, But Valuation is Out of Hand

Andy So submits: Investors in Baidu.com (BIDU) have been taken on wild ride since the stock debuted in early August, 2005. In the little over a year since Baidu launched its IPO, the stock has seen a high of over $120, a drop to mid $40’s and a recovery to current levels over $90.

I wrote last year that Baidu was severely overvalued, especially with the company’s lack of earnings and operating history. Baidu’s outstanding recovery from mid $40’s levels begs a re-analysis of the stock.