Baidu (BIDU) – Next Stage in Growth Cycle ?

 

We switched our tune earlier this year on our bearish sentiment on Baidu (BIDU). Since that time, Baidu (BIDU) has broken above $100 and now sits above $110 right before a critical earnings report due after the bell.

Last time we cited it's recent acquisition of IPTV as a possible catalyst for a move higher. Then last week it was the announcement of another acquisition that spiked shares.

With Baidu (BIDU) shares under pressure over the past 2 years on competition concerns and it's ability to generate revenue and profit in a changing environment, we feel these acquisitions shows Baidu (BIDU) is focused on evolving and adapting, which is key for a tech company.

We are currently bullish into earnings and hold $125 and $130 calls and will add more to our position throughout the week.

Obviously holding positions into earnings can be a very risky venture, but we feel the reward at these levels, exceed any risk and expect Baidu (BIDU) to test  $115.66 in short order.

BIDU 7-25 - small

 

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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