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Jeff Clark: This stock could be headed for disaster
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Tuesday, February 09, 2010
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By Jeff Clark in Growth Stock Wire:

By this time tomorrow, we'll know if Baidu (BIDU) – the "Chinese Google" - beat the Street. More importantly, we'll know what the market thinks about it.

BIDU reports quarterly earnings after the close today, and most analysts expect the company to beat Wall Street's $1.68-per-share estimate. They also have high hopes BIDU will raise guidance for the coming quarter.

Those lofty expectations have set the bar pretty high – maybe too high for the company to hurdle over. BIDU currently trades 73 times this year's earnings estimates and 50 times estimates for next year. So investors are already discounting some fairly remarkable growth.

If the company can't lift expectations even higher into the stratosphere, then shareholders may be in for one heck of a tumble.

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Topics: Jeff Clark | Technology | Stocks
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