Historical Price-Reaction Patterns Following Baidu Q2 Earnings

Chinese search engine operator Baidu (BIDU) will report 2Q10 earnings on July 21 after market close. My research has revealed some interesting price-reaction patterns following its earnings releases: First, Baidu has released 20 quarterly earnings reports since its IPO, and its share price has risen 12 out of 20 times for the next trading day following the earnings announcements, representing a 60% "winning percentage" (see chart below). Second, since 1Q07, Baidu has released 13 quarterly reports, and its shares have risen 10 out of 13 times for the next trading day, representing a 77% winning percentage. Third, since 1Q07, for three

View the Original article