China's Baidu.com's bubble already deflating
A Dow Jones/AP newswire article by Riva Richmond, via SFGate.com, reports that:
Baidu.com Inc.'s bubble has already deflated remarkably, less than three weeks after its U.S. stock-market debut.
The Chinese Internet search engine's shares soared 354 percent to $122.54 on their first day of trading on Aug. 5, a rise that, for some, triggered uncomfortable memories of the late 1990s go-go days.
The stock's ascent, which peaked at $153.98 during the second day of trading, reflected investors' ongoing love affair with Baidu's much larger U.S. cousin, Google Inc., and outsize hopes for China's consumer class and budding Internet industry.
The enthusiasm is already waning. Baidu's Nasdaq-listed American depositary shares are worth little more than half their Aug. 8 peak value, based on Thursday's closing price of $79. The stock went public at $27.
Baidu is still valued at about $2.4 billion, a number that strikes many market watchers as exorbitant for a company that posted $7.9 million in revenue for the second quarter.
posted by Fergie @ 8/25/2005 05:29:00 PM
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