She see money all around me I look like I'm the man, yeah But I was down and out like last week! BIDU on sale at $131.

ev: 37b p/b:1.8

Using 2018 numbers, trade at a ev/fcf of 9.25 and ev/ni of 11.6.

biggest risk: 1st loss since ipo, slowing search growth guidance, baba and tcehy doing well, investing in ai, self driving, streaming, etc

Search engine Baidu (BIDU) reported a net loss of 327 million yuan ($47 million) for the three months to March due to a slump in its main online advertising business.

That was the company’s first loss since it went public in 2005, and compared with a profit of 6.7 billion yuan during the same period last year.

CEO Robin Li said the sharp drop in earnings was due in part to China’s broader economic slowdown and increased government scrutiny of online content, which had hurt the company’s core business. Online marketing accounted for 73% of Baidu’s quarterly revenue of $3.6 billion.

“Although the Chinese government has announced many economic policies to bolster the economy … we are taking a cautious view that online marketing in the near term will face a more challenging environment,” Li said during an earnings call.

China’s economic growth has slumped to a near three-decade low in recent months, as the country grapples with an escalating trade war against the United States and tries to rein in high levels of debt.

Baidu is trying to broaden out its sources of revenue beyond its core search business, investing billions in areas like artificial intelligence and self-driving vehicles.

The company announced Thursday that the head of its main search business, Hailong Xiang, had resigned after 14 years at the company. Baidu named its vice president of mobile products as his successor, saying the mobile and search businesses would now be combined into one.

take this garbage to the investment forum

this doesnt belong with abortion talk, fat greenie, and poor people buying art


Why you gotta be so rude?Don’t you know I’m human too?

This sounds like the $15 GE call some of you made in that 2018 ideas thread. It might be a good long-term value play, but it’ll likely get killed by neg momentum, especially with all this trade/MAGA stuff going on.

balance sheets were completely different. bidu aint levered and has a ton of net cash. also p/b is much lower than ge. ge literally had a ton of debt. and started selling assets to pay for that debt.

in terms of losses, bidu’s 50m loss is pretty de minimis relative to its book value, even if we did a runrate 200m, its a small portion of book with ~30b.

fcf was down -200m. with a ru nrate of 800m, its still only 2.6% for compairson ge was losing like 10% at 2016. its even worse now, literally its book might go negative unless their earnigns stabilize.

the big thing about bidu is that it is losing a ton of market share. bytedance’ tik tok i think is killing them. something about discovery. i guess people dont want to search for shit anymore, they want recommendations on what to read.

funfact: when i go to reddit. a bunch of porno and insta hotties just pop up. theres a bit of fire stuff too. and nothing like wsb to brighten my day.

lastly volume is insane. literally 21m today vs 3m avg. will look forward to seeing next quarters 13fs

also its cray tehre is a wsj article that google is developing discover news feed. just goes to show you that china is the innovator now.

the best cos in china are much better than the best cos in us and trade at much better values. -paraphrasing recent interview by munger 69% sure he meant tech

Nery, I bought SNAP at $12 and sold at $5. You going to pay me money back or not?

lol i never bought snap. i was just trying to justify their ipo price with their projected guidance. obviously their actual numbers didnt live up to their projected numbers. anyways it was a great lesson to learn. better now when your net worth is low vs later!

Black Friday sale today $120. If SPX goes anywhere near December lows, this will be a double digit bargain.

haha yea would not have a expected a further down day. but the lost is only 800 bucks for me. aint nothing but a g thang baby!

imo they should trade differently from us. china valuations much cheaper than us yet prolly has more growth.

What do you think about TSLA for $200? This is the lowest price since 2016. Are these temporary trade war fears, or are economics just catching up to them?

big fan as a consumer. but as an investment. me no likey. cash flow negative, earnigns negative. i like how they issued shares, when you have losses this the best way to dilute ur losses while strenghten their bs. after their 2b raise, they will have 4b cash. with about 5b in other current assets. they bruend 850m last quarter (run rate of 3.2b), with no coming catalyst until 2020. their fcf in 2018 wasnt bad at 200m though but prior to that year they burned 4b, 1.5b,and 2.1b