Baidu is investing in mobile development as its search app installments rose 50 percent to 330 million users by the end of September compared with three months ago. The Internet company agreed in August to pay $160 million for 59 percent of location- based e-commerce service Nuomi Holdings Inc. and in July said it would buy app store 91 Wireless Websoft Ltd. for $1.9 billion.

“The company is very willing to invest in mobile and so far results are good,” Echo He, analyst at Maxim Group LLC in New York said by phone. “Baidu's fourth quarter results should be better than this quarter as it will sell more advertisements to businesses during the holiday and shopping season.”

Eoin Treacy's view As media consumption evolves at an increasing pace, the companies most likely to benefit are likely to be those that control infrastructure or those that make themselves indispensable to their customers. A high degree of commonality is evident across the internet portal/social media sector with impressive uptrends suggesting this remains a high growth area. The question now is just how much good news has already been priced in.

Baidu broke a medium-term progression of lower rally highs in July and rallied to test new all-time highs by last week. Considering the pace of the recent advance, some consolidation of gains appears likely in this area. Other high fliers such as Tencent Holdings in Hong Kong and US listed Facebook and Yahoo are also susceptible to mean reversion. Google surged higher earlier this month on impressive earnings results but is now susceptible to some consolidation of that powerful gain.

AOL hit a peak near $40 in May and has been engaged in a process of mean reversion since. It found support last week in the region of the 200-day MA and a sustained move below $33 would be required to question recovery potential. Groupon has returned to test the 200-day MA, where it will need to find support if medium-term demand dominance is to be given the benefit of the doubt. Online games publisher Zynga has been ranging above its 200-day MA in what has the appearance of a first step above the base. A sustained move above $4 would confirm a return to demand dominance beyond the short term. WebMD has held a progression higher reaction lows since late last year and completed its most recent range last week. It would be best bought following one of its periodic pullbacks to test the progression of higher reaction lows. Youku.com continues to form a first step above its more than two-year base.