Is Baidu Bottoming Out?

Baidu's (Nasdaq: BIDU  ) multiple has now fallen to around 15 times forward earnings. With such a huge amount of its domestic market left untapped for the Chinese search giant, what is the reason behind Baidu's disappointing lack of growth recently?

In this video, Motley Fool tech and telecom analyst Eric Bleeker tells us that the shift from PCs to smartphones is also affecting the Chinese market, which has been a headwind for Baidu as it works to solve the mobile revenue problem, but he cautions that even some rockiness in the short term with this company shouldn't discourage a long-term bullish perspective. Google (Nasdaq: GOOG  ) is several years ahead of Baidu in terms of its development of mobile monetization -- meaning investors shouldn't use that company as a baseline for where Baidu's mobile sales should be at today -- and with 80% of the search market share in China, these are problems that the company will solve.

Regardless of your short-term view on the Chinese economy, there may be opportunity in Baidu (aka the "Chinese Google"). Our brand-new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2141426, ~/Articles/ArticleHandler.aspx, 7/26/2014 6:16:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASD 4,449.56 -22.54 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/25/2014 4:00 PM
BIDU $226.50 Up +22.23 +10.88%
Baidu CAPS Rating: ****
GOOGL $598.08 Down -4.93 -0.82%
Google (A shares) CAPS Rating: ****