3 Reasons You Should Fear This Chinese E-Commerce Giant

Get ready for another huge upheaval in China's search market:  China's e-commerce giant Alibaba has launched Aliyun, or Alibaba Cloud Search.

Though the new search engine offers four seemingly simple searches -- across web, news, images, and maps -- Fool contributor Kevin Chen discusses three reasons why this move should frighten investors in Google  (NASDAQ: GOOGL  ) , Baidu  (NASDAQ: BIDU  ) , and Qihoo  (NYSE: QIHU  ) . 

  • First, Alibaba has a long history of dabbling in search. Since Yahoo!'s investment into China's e-commerce giant, Alibaba has managed the search function on Yahoo!'s China website.
  • Second, Alibaba owns 40% of the e-commerce market (for comparison Dangdang owns just 1.6%) and has used its market share to help shut down Google Shopping, Google's search engine for products.
  • Third, new CEO Jonathan Lu seems like he will make mobile -- including mobile search -- a big priority for Alibaba. 

Putting the pieces together, Alibaba seems like it can and will do anything to make sure its new search engine crushes Google, Baidu, and Qihoo. To learn more about Alibaba's new venture, click on the video now.

If you want to minimize the risks of Alibaba crushing your investment while also partaking in the upside of China's staggering growth, then your best bet is in Baidu (aka the "Chinese Google"). In our brand-new premium reportThe Motley Fool team breaks down the dominant Chinese search provider's strengths and weaknesses. To access it now, click here.


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  • Report this Comment On April 17, 2013, at 4:43 PM, buckwas1 wrote:

    Technically bottom is not reached unless BIDU hit at 50-55. Monthly chart clearly points BIDU has not been reached at oversold territory yet.

    No matter how much analysts pump the rotten stocks there could be more damage as suspicion arises because stock don't work as analysts think.

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