Presumed 90% wrong...

Reality bites for those left holding grossly over-priced baidu.com shares.

Bloomberg reports:

Shares of Baidu.com Inc., China's most-used Internet search engine, plunged as much as 24 percent after analysts from two firms that managed the company's initial public offering said the stock is overpriced.

Based on the opinions of China's Internet CEOs we quoted yesterday, the lads at Goldman must be 90% wrong when they say that baidu's shares are worth more like $27 than the $113 for which they closed yesterday. It still sounds a bit generous to me. Mind you, as Goldman was one of the managers of the IPO, they can't be too down on it can they.

Update: Adding fuel to the fire, China Stock Blog tells us that Morgan Stanley's Mary Meeker has initiated coverage of China's internet stocks. "Their top picks include Ctrip (ticker: CTRP), NetEase (ticker: NTES) and Tencent (instant-messaging business traded in Hong Kong). Their top segment pick is online gaming (they expect local players with self development and distribution capacity to emerge as long-term winners)," the post says.