Down 26% year to date, and 7% last week alone, the Chinese tech stock is dirt cheap.
Baidu (BIDU 0.72%) shares are down 26% year to date, against a more-than-10% rise in the S&P. So what are investors so scared of? Is it slowing Chinese growth? The rise of Qihoo 360 (QIHU.DL)? Or perhaps the same worries over a fumbled "transition to mobile" that recently dogged Google (GOOGL -1.97%) and Facebook (META -10.56%)?
Actually, it's all of these -- and as Fool contributor Rich Smith explains, none of them change the fact that Baidu is a dirt-cheap dream stock.
Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Baidu, Facebook, and Google and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Baidu, Facebook, and Google. 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.
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