Fears over China's slowing growth, Baidu's (NASDAQ: BIDU ) slowing revenue, and Baidu's weakness in mobile have driven the company's stock price down as bears have weighed in. However, Fool contributor Kevin Chen thinks long-term investors actually have three great reasons to buy Baidu.
First, China's cyclical changes are just that: Cyclical, or temporary. And when digging into the numbers, China's slowing growth is not slowing down that much. In actually, it's still growing at a phenomenal rate -- at least by U.S. standards -- so Baidu should benefit.
Second, Baidu's "slowing" revenue growth is an exaggeration. When looking at the company's revenue growth year-over-year over the past five years, what we have is a company that would make Apple (NASDAQ: BIDU ) investors envious.
Finally, the shift to mobile does open Baidu up to competitive threats, but the company is prepared. As we've seen on desktops, Qihoo 360 (NYSE: QIHU ) has had an easy time gaining market share in search and could take on Baidu in mobile. The good thing is that Baidu has made four key moves to ensure its future in mobile.
To learn more about Kevin's reasons for buying Baidu, watch the video below.
Even if you think Baidu's competitive and economic threats are serious hurdles, there may still be an opportunity in Baidu. In our latest premium report, The Motley Fool team breaks down the dominant Chinese search provider's strengths and weaknesses and why its stock may be a great long-term buy. Just click here to access it now.