When investors hear that about 44% of the Chinese population is connected to the Internet, a company like Baidu (NASDAQ:BIDU) 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 (UNKNOWN: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.
Erin Miller has no position in any stocks mentioned. Fool contributor Steve Heller owns shares of Google. The Motley Fool recommends Baidu and Google. The Motley Fool owns shares of Baidu and Google. Try any of our Foolish newsletter services free for 30 days. 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.