Baidu Inc led the rally in Chinese equities exchanged in New York. The company said that it gained more profits after Facebook outdid the estimates of analysts. Analysts stated that because of Facebook's earnings, the outlook for social media companies boosted.
The most traded Chinese stocks in the US in Bloomberg's China-US equity index climbed 2% to 92.63. The figure allowed the stocks to progress for the eighth time in nine consecutive days. Baidu's stocks jumped the most in three years.
The Beijing-based corporation charted its net income of JPY2.64 billion or US$431 million. This was compared with JPY2.6 billion average estimates of eight analysts. Its revenue rose 39% to JPY7.56 billion as advertising companies tried to spend more to reach out to their mobile users.
Barclays Plc recommended buying stocks of Baidu to investors who wanted to earn rapidly. Around five other brokerages increased their price target for the American Depositary Receipts of Baidu to as much as US$157. ADR was defined as the stocks of foreign corporations that trade in the US markets. These stocks were issued by US depositary banks.
"The trend in the mobile business is encouraging," ABR Investment Strategy LLC's analyst in San Francisco, Henry Guo, said through phone. "Like Facebook, the key for Baidu's success is its mobile strategy and execution."
Join the Conversation