Baidu: Nasdaq 'purgatory' testTwo months ago, the world's largest Chinese search engine \u0026 mdash; \u0026 mdash; Baidu on the Nasdaq staged a seminal myth of wealth. But 60 days later, the Chinese web portal Jubi really flashy facing satisfied that the city issued a \u0026 ldquo; heaven is also a hell \u0026 rdquo; sigh. Perhaps through the wealth symbol are doubled but is rapidly shrinking enlarged Daxitaibei, Baidu can derive an opportunity to think deeply. Heaven Or Hell? Two months ago, the Nasdaq Baidu \u0026 ldquo; Dream IPO \u0026 rdquo; has been unprecedented attention. The first day of listing on the stock to jump from the issue price of $ 27 on the day around $ 120, which rose 354% of the US stock market has also created five years, the first day of the new listed companies rose the most. Three days later, Baidu stock is hitting a record high of $ 154. Concocted countless millions, millionaires also let the miracle of the US stock market to Baidu new experience to the \u0026 ldquo; making the rich \u0026 rdquo; hearty. And Baidu shares against the background of soaring, Baidu CEO Robin Li suddenly turned into a $ 900 million fortune wrapped around the waist of the super-rich, but the story is also more than that, the day of the birth of Baidu listed a total of seven dollar billionaires, hundreds of millions of rich and a greater number of millionaires, and most of them are still a student six years ago. Investment mad pursuit of power for Baidu Baidu shares created prosperity. As \u0026 ldquo; China Google \u0026 rdquo ;, its powerful concept firmly charm to attract the attention of investors, particularly those investors who missed investment opportunities in the early stages Google listed more do not want to miss a second Google. Thus, while Baidu just from 2004 profit, earnings per share only a few cents, but US investors are optimistic about the vast market of China's 1.3 billion population. Some experts pointed out that from 2006 to 2009, Baidu's revenues will reach an annual growth rate of 35%, an average annual growth rate of earnings per share will reach 40%. Reason to make this judgment is that, by 2008 the number of Internet users in China will reach 252 million, more than the United States, which will provide a powerful guarantee Baidu's growth. However, when Baidu shares more than 150 US dollars, someone was sent out \u0026 ldquo; Baidu mad \u0026 rdquo; cry, because Baidu's price-earnings ratio has reached more than 2,000 times. Capital market investors are mercenary, when the stock price much higher than its intrinsic value that is the company's performance, risk adjusted stock price is getting bigger. In fact, when Baidu listed on the first day in a record $ 120 ultra-high closing share price, Baidu is facing a \u0026 ldquo; mad \u0026 rdquo; fate. Wall Street analysts at the time and the Chinese Internet industry believes there is a big bubble Baidu shares, fell inevitable fate. Sure enough, the market soon Baidu share price all the way down, which, while there are slight fluctuations, but has been in a downward trend. Close to October 6, Baidu shares fell to $ 67.20. In less than two months, Baidu's share price has sacrificed half. Experts believe that at present only the entire Chinese search market over 100 million US dollars, Baidu return in the stock price is a necessity. Meanwhile, the development prospects of China as investors expected the Internet there is a big difference, Baidu's share price volatility of the situation will be presented in a fairly long period of time, but the stock Air Jordan 9 price trend must go down. Baidu stock price volatility and, of course, is a Li and his management team. Since Baidu take national ownership strategy, as the company stock rises, hundreds have hundreds to thousands of shares of company stock Baidu employees suddenly became a millionaire. Today, however, this has been a very real dream of getting rich all of a sudden it becomes illusory. According to regulations, the vast majority of Baidu in the hands of employee stock until next year in February to sell, but now Baidu's share price has already suffered a major test, after six months of Baidu who knows what the stock price. Moreover, years of service, most of Baidu employees early next year, only one-third of their shares to perform even a quarter, and then deducted the relevant taxes, the real could get the hand, it might have been very few. As also the investment bank? Investment bank also lost? In the operation of Baidu NASDAQ plan, Baidu listed as underwriters Goldman Sachs, Credit Suisse First Boston is well-intentioned. Thus, when Baidu IPO, its number of issued only 404 million shares, the proportion of its total share capital of only 12%. Such a small issue size will undoubtedly have scarce effect, so that investors form \u0026 ldquo; demand \u0026 rdquo; feeling, thereby agree Baidu's high stock price, which is Baidu listed on the same day can be jumped from the issue price of $ 27 to over $ 120 closing reason . Coincidentally, when Baidu interpretation of End helicopter storm occurs under Shui, has \u0026 ldquo; network Queen \u0026 rdquo; said Morgan Stanley analyst Mary Meeker star released a report on China's Internet, said the amazing potential of China's Internet, and Relying on this statement, Baidu shares jumped 30 percent in three days. May at Two days later, as Baidu underwriters Goldman Sachs Air Jordan 14 report published dramatic shift inexorably into Baidu's shares to the ice. Goldman Sachs analyst Anthony \u0026 middot; Noto \u0026 mdash; \u0026 mdash; the world's best Internet stock analyst who in 2004 'Institutional Investor' magazine's believes that Baidu's stock price is overvalued at least 60% of its target price should be $ 27, while Baidu shares his most optimistic estimates are only $ 45. Noto noted that although Baidu has a strong business strength, is expected to achieve rapid growth in a favorable market environment, but in view of its stock price has exceeded a reasonable price range, and therefore should be the stock rating to \u0026 ldquo; underperform \u0026 rdquo; . Affected by this, Baidu shares fell 28 percent that day, $ 1.4 billion market value evaporated instantly. Currently, Baidu share price has fallen below $ 70 or less. One thing we need to pay particular attention to the US stock market is full circulation, so the risk of investors in listed companies after a successful referral, often opt out in order to profit. And behind the venture capitalists often functioning international investment bank. Baidu shares plunge from a hurricane to, I High Quality Nike Force 1 Mens White Blue Shoes am afraid it is the venture capitalists and investment banking agencies to make the results of the Board. Therefore, the association to the prosperity Li Baidu shares opened the blame for the \u0026 ldquo; Baidu by the international capital market real respect \u0026 rdquo; explained, now it seems it may not be a blessing. Because, in the initial stage with Chinese characteristics, the Internet, Baidu is to rely on to gain market share in the domestic first? This first position while maintaining long? Why quarter net profit Baidu only $ 1.5 million? Wall Street analysts may not be able to speak clearly. As for the domestic constraints of economic development such as payment search, user habits and other factors when to break the bottleneck? Wall Street is accustomed \u0026 ldquo; analogy with the United States the same company \u0026 rdquo; the practice may not adapt to the Chinese market, Baidu stage. Not to mention Wall Street will not give Baidu a \u0026 ldquo; stupid \u0026 rdquo; the idea is now to toss Baidu shares whipped up and down, not a good thing. Goldman's report seems to explain, he had passion, then ruthless, probably the same group of people. Of course, objective analysis, Goldman's report is not entirely without reason. Baidu according to data released by the first half of this year, operating income was $ 13.6 million, net income of $ 1.8 million, according to Baidu listed on the first day closing price calculation, price-earnings ratio reached 2450.8 times, which means that according to Baidu current earnings level, US investors need in 2450 to recover their costs. Such a long wait for no one can fight the Americans, unless investors believe Baidu will create miracles in just a few years. VC will not give up the issue of the number of manufacturing Baidu \u0026 ldquo; scarce effect \u0026 rdquo; and to stimulate investors to herd-like investments, Baidu issue price of $ 27 / share also led to \u0026 ldquo; \u0026 rdquo ;, herding and became short an important Nike Air Max 89 force within a few days Baidu shares into the sky. For those Wall Street VC (venture capitalists), Baidu shares from buy low moment, it has strengthened the confidence of his own body a great fishing from Baidu's: With investment banks clamor, singing Baidu shares Sheng, when the target price to achieve the desired state sold a lot of Baidu shares, causing the stock price plummeted. Cheap big into, expensive large out \u0026 mdash; \u0026 mdash; this very simple game now allow VC to earn windfall profits. Of course, not only Baidu to pay for it, as well as numerous VC did not get the cards \u0026 ldquo; tricks \u0026 rdquo; the size of the investors. Venture capitalists are an important force in maintaining the growth of pioneer. Relative to Baidu, many people, stand to gain a lot of money VC sure this close hand, turning it cast; and with Baidu stock prices may slumped, VC will give up on Baidu's attention. But my opinion, VC will not easily lose Baidu tree \u0026 ldquo; \u0026 rdquo ;, Moneymaker especially with the stock price reaches a steady state after Baidu, VC and Baidu will renew old well, and thus to increase investment in Baidu's, So Baidu will not become Wall Street \u0026 ldquo; \u0026 rdquo ;. outcast That is why since the beginning of October fell into \u0026 ldquo; Baidu after another important reason for the slow start upturned; bottom \u0026 rdquo. Indeed, despite the Baidu body was out of the bubble a lot, but VC understand that a new round of Internet investment boom to keep up once the \u0026 ldquo; blind, impulsive pursuit eye and traffic \u0026 rdquo; different compared. Five years ago, the Chinese Internet is still just a concept, has not yet been validated business models appear; and this is based on the boom of a mature business model, the future development of the Internet market can be predicted. Now investors are optimistic about the current value is not the company, but the future. So, like Baidu, it has a certain profitable Internet companies do not fall into the cycle of bubble, and investors will once again optimistic about Original Nike Force 1 Mens Gray Pink Shoes entering a stable growth period after. As Netease had sought to enter the Nasdaq was crazy and then again suffered the cold and today is the same as venture investors favored them. In fact, the support will not give up an important force Baidu VC or the Internet to re-release market value. This moment. Today's Internet industry has developed into one with multiple members of the online community, online games, e-commerce, search engines, instant messaging, software, semiconductor and IC and other large family. In this large family, the search engine has become one of the objects the most enthusiastic venture capitalists. Hai Yirui Consulting Group estimated that in 2006 China's search market will increase to 1.62 billion yuan, in 2007 the search engine market share will reach 3.37 billion yuan. Comments can be seen in all aspects of the search engine service position in the Internet industry is gradually rising, while Baidu as China's \u0026 ldquo; Google \u0026 rdquo ;, minds of investors in the United States represent almost the entire Chinese Internet industry, its the bet The heat also with Baidu to enter a stable orbit and heating. I believe that in the international venture capital into China's premise, Baidu will undoubtedly become the habitat of many VC. Baidu is most needed is the performance of the Nasdaq market opened for Baidu extraordinary performance in a few days, a tenured professor at Yale University, Dr. Zhiwu from the perspective of market mechanism put forward an alternative interpretation. That is precisely because the stock market \u0026 ldquo; speculative \u0026 rdquo; only to the United States 150 years have past hundreds of thousands of \u0026 ldquo; Baidu \u0026 rdquo; story possible. However, \u0026 ldquo; speculative \u0026 rdquo; since she can take you to heaven, it must be able to let you go to hell. Although the stock market this machine discounted rate to accelerate the realization of wealth, but also accelerated the process of wealth. In my opinion, the Wall Street investors \u0026 ldquo; investment \u0026 rdquo; Baidu's \u0026 ldquo; machine \u0026 rdquo ;, not out chasing its market value, sought after is Baidu's concept \u0026 mdash; \u0026 mdash; in addition to Baidu is \u0026 ldquo; second Google \u0026 rdquo; outside, there is an important element is the \u0026 ldquo; \u0026 rdquo ;, Chinese concept Without China, there is no Google, Baidu's IPO is difficult to release the magic ups so as people mind. However, a Chinese concept, so listed were carrying too much pressure. CDC is a typical Chinese concept product, remember that there are many foreign media the CDC, Sina and other Chinese Yahoo seen, however, CDC's shares today appalling. Also, up to $ 150 can not carry stock Baidu, only a concept, it is impossible to convince investors, ultimately rely performance speak. Despite winning the \u0026 ldquo; China Google \u0026 rdquo; said, but can be seen on the financial statements, the current Baidu revenue size in Google 2015 Latest Nike Shoes before it is too small. One can explain the data in question that, Google second quarter revenue of $ 1.38 billion on a net profit of $ 342.8 million, while Baidu's revenue in the second quarter was $ 8.4 million, Top Design Nike Air Force 1 Unisex Blue White Shoes net profit of 150 million. According to the latest filing shows Baidu in the second quarter, Baidu's profit has experienced extraordinary growth year on year, after more than six times earnings per share was a mere 5 cents. So, how to shape and fully demonstrate their operating capacity to prop up the stock market revenue, which Baidu is concerned, not only is the process of landing, but the process of reengineering its core competitiveness, operating income, but to a point one subdivision earned, will not be listed on the sudden moment psychedelic rapidly. Not only that, but also to get rid of Baidu has been reluctant to let go of the strategy to follow and imitate. Such as \u0026 ldquo; Baidu know \u0026 rdquo; prototype is the foreign experts-exchange. com and Sina Iask; search the hard disk is to follow Google Desktop, a number of other products, almost all Google came along. If we say that the use of Chinese elements Baidu victory, then in the next 2--3 years will face tremendous competition in the market. On the other hand, Baidu current income almost from the \u0026 ldquo; \u0026 rdquo ;, auction ads Baidu also learned Although Google launched \u0026 ldquo; to promote the theme \u0026 rdquo; test, but it is still no large-scale open to site owners to use. Not only that, Baidu's bid advertising is almost in the Banded, since last year, Baidu search bid to change the arrangement form, all the paid ads ranked in the forefront of the search results, resulting in a number of popular keyword auction advertising only after nearly 10 there will be the normal search results, and Google generally appear on the right result, even when the results appear in the upper end, and only one. As someone said, the Internet is not always the boss, and some will be surpassed. Currently Baidu in the Chinese search market share was 37%, while the corresponding market share of Google and Yahoo were also accounted for 23% and 21%. Baidu weather was less than the king. It was at recently, Alibaba announced the full acquisition of Yahoo China, while Yahoo's $ 1 billion investment to obtain, the desire to build China's most powerful Internet search platform. In addition, there is a search engine field can not be ignored rising star \u0026 mdash; Sogou, Sohu independent technology developed by its launch a year ago, the page has more than 1 billion, a significant increase in traffic, nearly three months of its traffic has grown 3.5-fold . And in Baidu music copyright lawsuits and suffered a double blow when the stock price fell, his mentor, Google is China launched two other important events: one brought Kai-fu Lee, one began to establish their own distribution channels and selected their own agents providers. This also means that the high-pressure Google to Baidu in China will begin immediately. Baidu must do with rivals snatching market preparation. (Text / Zhang Rui)