Baidu, Inc. (NASDAQ:BIDU) beat revenue estimates in its latest quarter but still posted a net loss
Chinese internet search leader Baidu beat revenue estimates in its latest quarter but still posted a net loss, which it blamed largely on equity investments that fared poorly.
The Beijing-based search leader said its total revenues in the third quarter ending September 30 came in at 28.1 billion yuan ($4.0 billion), down slightly from a year earlier but just beating a 27.5 billion yuan average predicted in a Bloomberg poll of analysts.
The result was announced after US markets closed, sending the Nasdaq-listed company’s shares up more than six percent at one point in after-hours trading.
Baidu reported a net loss of 6.37 billion yuan for the three months, compared with the year-earlier period, due largely to a “non-cash impairment” of 8.9 billion yuan on equity investments.
Considered China’s answer to Google, Baidu has traditionally relied on advertising for much of its revenue.
But the ad sector is particularly vulnerable to economic slowdowns like the one China is currently experiencing, raising concern for Baidu’s future profits.
The firm has also been pouring huge sums into a push to reposition itself as a leader in advanced technologies such as artificial intelligence (AI) and driverless cars, which the government wants the country to become a leader in.
In the first quarter of this year, Baidu posted its first quarterly loss since going public in 2005, and saw the head of its core search business resign amid the struggle to grow ad sales.
Baidu has in particular faced a stiff challenge from upstart ByteDance, which has quickly grown its user base thanks to highly popular video apps such as TikTok and Douyin, and has recently moved into the internet search sector.
The challenges faced by Baidu have caused the value of its shares to fall by around 45 percent this year while other big Chinese internet companies such as Alibaba and Tencent have held steady or risen.
But Baidu said daily active users of its app rose 25 percent year-on-year, contributing to the third-quarter revenue growth.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 106.91.
The projected upper bound is: 113.94.
The projected lower bound is: 100.92.
The projected closing price is: 107.43.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.9031. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 55.82. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 57 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 119.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
BAIDU INC ADS closed down -0.690 at 107.360. Volume was 16% above average (neutral) and Bollinger Bands were 42% narrower than normal.
Open High Low Close Volume___
108.810 109.090 106.620 107.360 4,259,416
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 104.98 104.88 132.03
Volatility: 36 40 45
Volume: 4,180,612 3,368,293 3,716,290
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
BAIDU INC ADS is currently 18.7% below its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of BIDU.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BIDU.O and have had this outlook for the last 1 periods.
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