When investors hear that about 44% of the Chinese population is connected to the Internet, a company like Baidu (NASDAQ: BIDU ) immediately sounds promising. However, the rate that Chinese Internet users are coming online may begin to stall, which could threaten Baidu's growth prospects. Couple this with increased competition from companies like Qihoo 360 (UNKNOWN: QIHU.DL ) , and all a sudden the Baidu growth story doesn't sound as exciting. In this video, Motley Fool contributor Steve Heller discusses the long-term headwinds Baidu is up against and what it may do in response to slowing Internet user growth.
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