Baidu Inc. (BIDU): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Baidu ( BIDU) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 1.7%. By the end of trading, Baidu fell $3.52 (-3.8%) to $89.89 on average volume. Throughout the day, 5,367,469 shares of Baidu exchanged hands as compared to its average daily volume of 4,089,000 shares. The stock ranged in price between $88.08-$91.28 after having opened the day at $91.16 as compared to the previous trading day's close of $93.41. Other companies within the Technology sector that declined today were: Friendfinder Networks ( FFN), down 23.4%, TigerLogic Corporation ( TIGR), down 16.5%, Dynasil Corporation of America ( DYSL), down 16.1% and Intelligent Systems ( INS), down 14.0%.
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Baidu, Inc. provides Internet search services. Baidu has a market cap of $32.6 billion and is part of the internet industry. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are down 6.9% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Baidu a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Baidu as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, expanding profit margins, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, STEC ( STEC), down 86.9%, Keynote Systems ( KEYN), down 46.7%, Identive Group ( INVE), down 25.0% and ModusLink Global Solutions ( MLNK), down 14.2% , were all gainers within the technology sector with Shutterfly ( SFLY) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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