Chinese Search Engine Enjoys Massive IPO
By Justin Gardner | Related entries in Economy, TechnologyChina’s largest search engine Baidu, who recently declined further offers from Google to buy a bigger stake, had an amazing first day on Nasdaq. Seriously, nobody expected this one. The closing price is 122.44, and that’s +95.54 over the opening price, which represents a gain of +353.85%.
Wow, wow and wow again…
From CBS Marketwatch comes more about the Baidu IPO:
To the amazement and even awe of many traders on Wall Street, Baidu shares traded Friday at a current high of $151.21, more than five times its initial price of $27.In recent trading, Baidu traded at $128. At that price, Baidu is valued at some $4.3 billion, assuming 34 million shares outstanding. That means this company is trading at 143 times expected revenue!
Hello Web 2.0…
This entry was posted on Friday, August 5th, 2005 and is filed under Economy, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
August 6th, 2005 at 6:46 am
Will 2006 or perhaps 2010 be the time for their .bomb to go off, N years after our ‘net “tulip craze” tanked? Too soon to tell. But a balloon has certainly gone up… Thanks for this notice.
Nort
August 6th, 2005 at 1:51 pm
I’m betting 2010 since these companies are making a TON of money right now on pay-per-click (PPC) ads. However, some studies have shown that nearly 30% of the clicks on those ads are actually acts of fraud, meaning they’re either being done by somebody on their own site trying to drive up their own Adsense dollars from Google (a very small percentage) or competitors clicking on rivals ads so they’ll have to pay Google more money. Some go so far as to hire actual teams of people in India to click on competitors ads. Crazy stuff. We shall see.
August 6th, 2005 at 8:32 pm
Crazy stuff indeed. clikclickCLIK. It’s not exactly monkeys banging out Shakespeare (in the sense of ignorant or curious people producing value), but the latter practice you describe does sound like death-of-a-thousand-cuts, a Chinese classic.
OT: Thanks for the welcome on my blog, BTW. Do drop in from time to time. One of my big regrets is that I’ve discovered that blogger/blogspot doesn’t do trackbacks.
Nort