Google's 1 Key Advantage Over Baidu

In a showdown of search giants, Google holds one key trump card when compared to China's Baidu.

May 25, 2014 at 2:00PM

As far as areas to invest in the technology space go, search engines are one of the most attractive spaces around.

Google (NASDAQ:GOOG) (NASDAQ:GOOGL), the world's de facto search company, and Baidu (NASDAQ:BIDU), the "Google of China," both generate fantastic profits, continue to grow at outsized rates, and have strong brands that keep consumers in their respective geographies coming back to them time after time.

And while the similarities vastly outnumber the differences between Google and Baidu, I recently landed one key way (and a number for it) that Google and Baidu differ. Baidu investors will want to pay attention.

1 way Google trumps Baidu
Both Google and Baidu are struggling to adapt to the mobile future, but, in my eyes, Google finds itself in an eminently more preferable position than Baidu. 

Fortunately for Google, it controls Android, the world's go-to mobile operating system. And because Google gives Android away for free to smartphone and tablet makers around the world, it's able to bundle its search, mail, and other key applications into the OS every mobile hardware manufacturer this side of Apple is clamoring to use. 

Baidu, on the other hand, has to strike deals with third-party smartphone and tablet companies to buy placement of its key services into the smartphones and tablets on which it increasingly relies as a source of search traffic. In the video below, tech and telecom specialist Andrew Tonner discusses in further detail this key difference between Google and Baidu.

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Andrew Tonner owns shares of Baidu. The Motley Fool recommends and owns shares of Baidu and Google (A and C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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