AP: Baidu Rises After Price Target Increase
So, while the market is down and mostly quiet, BIDU shares are up nearly 7% to 251 today.
Two sessions ago, I wrote that traders would be feeling sketchy as Tuesday neared. Not everyone wants to be exposed to U.S. equities when the Fed speaks. So one of the natural responses would be the switch overseas. For high-risk traders, Baidu fits the bill, even as it is overvalued at 251 (or 151 for that matter). For momentum traders, BIDU has been a boon. On August 16, the stock fell to 161. Will it pull back if the Fed isn't as exhuberent? Today's volume is 4.9 million shares with 40 minutes left. Friday's volume was 1.8 million shares. BIDU is an A- stock in my book because of a) immense growth numbers, b) astronomical growth potential, and c) government protectionism.
Technically, there's no way I can buy the stock with the price soaring way, way above moving averages. But BIDU is an amazing creature to watch from afar.
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