Baidu stock cooling off

[bill]

I notice the Baidu stock has been on a steady slide since the initial buying frenzy. From a peak of US$153.98 it has now sunk to $72.69. That's still a lot higher than their initial pricing ideas but if you look at the charts the steady decline is obvious.

Is this just the markets self correcting? Any opinions as to why BIDU is on the decline?

[redstorm]

it's a common economic phonemonen. SEs aren't foams, buy in without hesitation! :)

[tcpn8]

They just annouced the outlook for the current quarter as well as reiterating the previous quarters numbers.....to me the stock seems mind bogglingly expensive! Considering that they are expecting full year earnings of 42 cents per ADR which gives it a forward PE of about 200!
[marketwatch.com...]
Although it would not be unthinkable but they would have to provide at least three years of stellar growth (maybe 70-80% earnings growth) to justify a price like that which is setting the bar extremely high.
Remeber it is still very difficult to short the stock and I imagine once the 90 day lock-up period ends some of the big hedge funds will beat this stock up like a pinata.....not to mention all the folks who might want to sell shares once the lock up ends to secure some vey nice profits!
Only time will tell......

[RoyalChina]

I did not expect Baidu's share soar that high! The market will continue to correct itself.