In this video, Motley Fool tech and telecom analyst Andrew Tonner talks with Fool.com editor Austin Smith about Baidu, the overwhelming market leader in China's search industry. Andrew says that while he's a Baidu shareholder and is long-term bullish on the stock, a good investor should always weigh the potential bear perspective as well, and this is what he does for us today.
While Baidu does have a huge potential for market growth in China, it's somewhat tied to the Chinese economy, which has experienced slowing growth as of late, a factor that could spook some investors. Also, Baidu is large, but not necessarily invincible, as some of the trailing market-share players are working to innovate, and hoping to erode some of Baidu's market share.
Finally, Andrew highlights one issue facing the entire search industry at the moment, one that many companies are unsure of how to proceed on: mobile.