On Apirl 28th, 2010, Baidu (NASDAQ:BIDU) announced the Q1 2010 earnings. The revenue shocked experts, and Baidu’s shares soared 14 percent after the bell.

Baidu switched their customers to a new AD platform called Phoenix Nest (Feng Chao) in 2009. And now, the strong revenue growth, proved that Phoenix Nest is a more powerful tool. From the mass observer’s point of view, Phoenix Nest is totally nothing new but changed the display form of ADs. However, in deep, the new platform allows competitive terms as Google does.

Once the competitive terms can be bid, I’m pretty sure the term price will grow higher and higher. This explains why Baidu’s revenue has improved so much, while Baidu has been weak in Q1 in so many years.