OUCH!!! Baidu Misses in After-Hours!

OUCHHH!!!!

Baidu reported after the close. After a weak forecast from Web portal and games operator Sohu.com (SOHU) this morning, Baidu (BIDU) shares are coming under pressure this evening following weak top-line results for Q3 and a Q4 forecast that missed estimates substantially.

Revenue in Q3 rose 39%, year over year, to $187.3 million, below estimates of $189.6 million, yielding profit per share, excluding options expense, of $2.16, well ahead of the $1.83 estimate.

For Q4, the company forecast revenue of $174 million to $180 million, short of the $203 million average estimate.

Baidu shares are down $46.73, or 11%, at $386.24.

My suggested "HIGH RISK" trade didn't pan out. As I'd suggested using the call spread for conservative traders, close the position out for a loss. For those who really wanted to assume more risk by selling the put option (extremely highly risky trade) can either close positions or may wish to own the stock, evaluate your positions.

On another note, Google (GOOG) is trading down $7 in after hours trading $547 off of the Baidu news.