By: Abby Schultz, JeeYeon Park – from CNBC.com
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Baidu [BIDU 148.25 -2.86 (-1.89%)
] fell despite doubling its profits from a year ago, and delivering a better-than-expected revenue forecast.
That may be simply because traders are taking a breather on the high-flier, as well as other fast-growing tech stocks.
“Tech earnings have been the catalyst for the rally since the start of earnings season, but today we saw one of the first examples of investors selling off a strong report with Baidu.com,” Scott Redler, chief strategic officer at T3live.com said in a note to clients.
“Some rest or downside action would be healthy here, and traders are taking risk off the table today with that in mind,” Redler said.
Apple [AAPL 346.75 -3.40 (-0.97%)
] also fell ahead of the Nasdaq 100 rebalancing, which takes place on Monday and will reduce the iPhone-maker’s weighting from about 20 percent to about 12 percent.
“If Apple gets going again next week, it could be another catalyst to power the Nasdaq higher,” Redler said.
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