Baidu was one of the best stocks to own in its first decade of existence. The low to high move exceeded an astronomical 5000%.
However, those days are over. As China Internet ETF KWEB breaks to new highs, Baidu relative to KWEB continues to hit new all time lows.
Looking at a multi year chart, we see a disgusting technical backdrop. There are heavy sellers above 190 and dips are being bought at higher and higher levels. This can’t continue forever, and it’s likely the stock moves lower. Possibly significantly lower. What would be bullish? A break and hold above 200 would be a great start.
Is Baidu the Yahoo of China? Who knows. The idea is that this formerly amazing stock has completely run out of gas and appears to have been significantly passed by competitors.
Trade ’em well