Dallas, Texas 07/26/2013 (Financialstrend) – Baidu.com, Inc. (ADR) (NASDAQ:BIDU) closed at $125.85 in the previous trading session after climbing up by $12.48 (or 11.01%). It has hit the day’s low at $120.26 and the day’s high at $132.86.
There was a report from the ChinaInternetNetworkInformationCenter that the online population had raised to about 591 million in which the wireless users are surging to around 464 million. The total percentage of population on the internet has reached to 44 percent. This fact provides hint that the next 100 million users will get themselves connected to internet via smart phones.
In order to fulfil the needs of people in the world of wireless communication, the company, Baidu.com, Inc, has been spending a very large amount to improve the search experience of the mobile and also to add the technologies to purchase a mobile app store, for mobile travel reservations and to purchase a mobile video platform.
These moves can convert the company into a mobile power house in China. Still, the stock market is focussed on the higher expenses which have caused the expectations for earnings to wilt for the year 2013.
The company has recently announced that it has made a deal to buy mobile applications platform (91 Wireless) for $1.09 billion. This deal has made the stocks of the company to rise while has made NetDragon to collapse in the trading of Hong Kong. This deal involved the payment of $1.09 billion to NetDragon for 57 percent stake and to the other 47 percent stake holders, $800 million.
91 Wireless only holds a market share of about 15.6 percent of the mobile application business in China with the Mobile Assistant controlling of Qihoo 360 Technology Co. Ltd. holding about 27.4 percent. The company also recently bought PPStream for $370 million in order to become a leader in the video online market.