Note: When I came back from lunch, the stock had shot up again to close at $122.54. What’s above the stratosphere ?
Baidu.com (BIDU) just made its debuts on Nasdaq, and went from an original IPO pricing of $14 to an pre-open price of $27 to an open of $66 to $99 $122.54 in a couple of few hours. This chinese search engine, which is set to earn $12M on $30M of revenues, was awarded a $3.6B market cap – representing a 300x (forward) earnings multiple.
Bambi Francisco wrote in a note before the stock opened:
Due to healthy demand for the 4 million shares available — Baidu had intended to sell 3.7 million shares at $20 apiece — it’s hard to imagine this stock not trading at $30 or $40 some time in the near future, if not today.
Then a few minutes ago, in Baidu feels like Netcape redux, but where’s Meeker:
To the amazement … Read more »