Last night Baidu (BIDU, qoute) reported $8.40/share comp EPS for 4Q 2013 which beat the street by a small amount, but the key to the report was a 1Q outlook that gives investors reason to believe more growth is coming. 

chinese internet users in internet cafeAt 35X EPS suddenly BIDU is not much more expensive than Google (GOOG, quote) and is delivering 35-40% growth which Google is not.

BIDU is guiding for 1Q revenues that are almost 60% higher than last year’s comp. and almost 10% higher than the street. 

The stock will break out today and has $180 as a key level to get through to add to all time highs.

Across the China internet space we continue to see demand and performance. 

Tencent (TCEHY, quote) was +5.3% to fresh all time highs this AM. 

Watch for a breakout in the EMCHI index today with these two heavyweights well bid.sg2014022726307

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