Baidu Slump Spooks Investors

Comments from a JPMorgan analyst triggered a sharp fall in the price of Baidu's American Depository Shares, losing 10 percent of their value.

Dick Wei estimated that Baidu.com's Q3 2007 revenue would be 3.2% short of earlier estimates.

This was enough to make a nervous market jump ship and offload Baidu's shares as well as other tech stocks like Apple and Blackberry.

This coincides with a Comscore press release that was released on the day Baidu's stocks got a battering, showing that Baidu beats Microsoft in worldwide search by nearly 50% (3.2 billion searches vs 2.1 billion searches).

Baidu's rise though seems unstoppable in a country which comes second only to the US in terms of internet users, with room to grow - the Internet Penetration in China is only 12.3%.