Baidu Surging In The After Hours (BIDU)

Baidu.com (NASDAQ: BIDU) reported strong earnings after the closing bell today and the stock has climbed 8.85% in the after hours trading session. The shares are currently changing hands for $473.65 after closing the regular session at $435.01.

Baidu (BIDU) posted net income of $62.7 million, or $1.80 per share, beating analysts' estimates of $1.68. Total revenue came in at $184.7 million versus estimates of $180.02 million.

Baidu (BIDU) has a large short interest, so this explosive rally in the after hours makes a lot of sense after the company reported a strong quarter. Much of this move may not be a result of new bullish buyers coming in and picking up shares, but rather short sellers throwing in the towel and covering their positions.