Baidu Is Oversold

Baidu (NASDAQ: BIDU  ) has slid more than 16% since its fourth-quarter earnings release. Decelerating growth and increased competition from Qihoo 360 (NYSE: QIHU  )  have spooked shortsighted investors. In the video below, Fool.com's Alison Southwick and contributor Daniel Sparks take a closer look at Baidu.

Growth may have slowed in some areas, but it's actually speeding up in others. Furthermore, if competition has caused management to suddenly commit to much higher research and development spending rates, investors should actually  be thankful; Baidu's much-needed R&D spending still lies substantially lower than Google's (NASDAQ: GOOGL  ) as a percentage of revenue.

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 (1)

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: 2287704, ~/Articles/ArticleHandler.aspx, 4/17/2014 3:25:31 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...


Advertisement