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Is Baidu in Trouble?

By Steve Heller - Apr 9, 2013 at 7:00PM

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The Chinese internet growth story may be more hyped than ripe.

When investors hear that about 44% of the Chinese population is connected to the Internet, a company like Baidu (BIDU -0.44%) immediately sounds promising. However, the rate that Chinese Internet users are coming online may begin to stall, which could threaten Baidu's growth prospects. Couple this with increased competition from companies like Qihoo 360 (QIHU.DL), and all a sudden the Baidu growth story doesn't sound as exciting. In this video, Motley Fool contributor Steve Heller discusses the long-term headwinds Baidu is up against and what it may do in response to slowing Internet user growth.

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Stocks Mentioned

Baidu, Inc. Stock Quote
Baidu, Inc.
BIDU
$122.90 (-0.44%) $0.54
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,283.82 (-1.96%) $-45.64
Qihoo 360 Technology Co. Ltd. Stock Quote
Qihoo 360 Technology Co. Ltd.
QIHU.DL

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