Baidu (BIDU 0.16%) has slid more than 16% since its fourth-quarter earnings release. Decelerating growth and increased competition from Qihoo 360 (QIHU +0.00%) have spooked shortsighted investors. In the video below, Fool.com's Alison Southwick and contributor Daniel Sparks take a closer look at Baidu.
Growth may have slowed in some areas, but it's actually speeding up in others. Furthermore, if competition has caused management to suddenly commit to much higher research and development spending rates, investors should actually be thankful; Baidu's much-needed R&D spending still lies substantially lower than Google's (GOOG +0.56%) as a percentage of revenue.
