OptionsPlay DailyPlay

The bullish DailyPlay for Monday, November 30th is Baidu (BIDU). BIDU has experienced an 6.67% gain over the past month as the company expanded into video content, cloud services and IoT devices. 

Fundamental View

  • BIDU has a 70% market share of search engine traffic in China while expanding and diversifying its business beyond search,
  • Cloud computing now makes up 10% of revenues and margin expansion warrants a higher valuation
  • Earnings: Feb 25th (91 Days)

Technical View

  • Pullback to $133 support level, bounce higher and breakout above $138 provides further upside
  • Both 1M and 6M trends are turning bullish
  • Strong relative strength, technical score (7 out of 10)