The Microsoft (MSFT) -Baidu (BDIU) trade that was initiated yesterday has already proved profitable as the earnings from Baidu came in much lower than anticipated which resulted in a loss of over 12% in today’s trading alone. Add to that the decent performance of Microsoft and I am already happy to report that it is time to close out this trade, as it currently stands at +20,37%. I will do so tomorrow morning and report prices as well as the final performance on the trade.
Another good earnings report came out for me as IAC Interactive (which I am short against Google) released earnings that did beat estimates in terms of earnings but also had a 9% decline in revenue, another clear sign that the company is not doing too well. Cutting costs will only get you so far, especially in the tech area. This is also good news because so many estimates focus on earnings that it might provide more opportunities.
Other trades have not moved much since Sunday’s report….!