On July 24, 2013, Baidu (BIDU) announced that earnings and revenue beat expectations while raising their 3rd quarter expectations above current analyst estimates. We had previously said that Baidu needed to exceed the $112.97 level before being able to achieve our next upside target. In two trading sessions since or recommendation of the stock on April 26, 2013 at $85 (found here), Baidu struggled to exceed $111 (July 18th and 19th).
However, at the end of trading during the regular session on July 24th, Baidu closed at $113.37. As the news came out about earnings and revenue, the stock catapulted to close at $129.09 in after-hour trading. at this point, we firmly believe that Baidu is set to achieve our previously indicated upside target of $140. A doubling of the stock price since our recommendation of BIDU is not out of the question (within the year from the $85 price). Get your sell orders ready (principal only), no use getting greedy on gains of +50% in 3 months. Below is the updated SRL for BIDU.
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