Baidu's (NASDAQ: BIDU) multiple has now fallen to around 15 times forward earnings. With such a huge amount of its domestic market left untapped for the Chinese search giant, what is the reason behind Baidu's disappointing lack of growth recently?
In this video, Motley Fool tech and telecom analyst Eric Bleeker tells us that the shift from PCs to smartphones is also affecting the Chinese market, which has been a headwind for Baidu as it works to solve the mobile revenue problem, but he cautions that even some rockiness in the short term with this company shouldn't discourage a long-term bullish perspective. Google (NASDAQ: GOOG) is several years ahead of Baidu in terms of its development of mobile monetization -- meaning investors shouldn't use that company as a baseline for where Baidu's mobile sales should be at today -- and with 80% of the search market share in China, these are problems that the company will solve.
