Baidu has underperformed the market by about 30% over the past year, Jeremy says. That's significant for a company that is so well positioned it essentially operates as a monopoly.
Scares over fraudulent Chinese companies have dragged down Baidu's price. Worries over a slowing Chinese economy also have delivered a blow, Jeremy says. But he sees this as a buying opportunity for the stock.
Because it operates in China, Baidu is one of the few Google-proof Internet companies in the world, Jeremy says. Baidu has been able to not only outpace Google's growth, but it has nearly doubled it, averaging about 70% growth, Austin notes. And that's in a nation where only about half of the people have Internet access.
With that growth, and a price that has Baidu trading at the same multiple as Google, the two analysts see the stock as a buy.
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