Baidu.com (NASDAQ:BIDU), the most popular search engine in China with a market share of 62.5% and growing, advanced $10.67 to $304.07 on Friday, easily surpassing the $300 resistance level. While the stock price more than doubled since January 1, the 52-week performance is still a negative 11.2 percent. For many the question is not IF but WHEN Baidu will reach $400, again.
Baidu touched above $400 twice in 2007 but could not establish a solid presence. While it eroded along GOOG and the market crash in 2008, the worst came in January 2009 when Chinese state media aired findings that Baidu sold advertisement for unlicensed medical providers. This came at the worst time, right in the middle of the tainted baby milk scandal in which numerous babies died.
But Baidu (NASDAQ:BIDU) calmed investors with a solid 2009 Q1 and a positive outlook. Customer loyalty runs high for Baidu evidenced by its market share of 62.5% and growing. This leaves open the door for a possible $400 and it's WHEN vs. IF.
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