Shares of Qihoo 360 (UNKNOWN:QIHU.DL) hit a fresh all-time high earlier this week after a favorable note from Maxim Group analyst Echo He.

Qihoo 360 turned to Google (NASDAQ:GOOGL) to monetize the search engine that it introduced into China this past summer, but He is encouraged by Qihoo 360's efforts to develop its own ad network that should move the needle in terms of revenue.

Baidu (NASDAQ:BIDU) is still the undisputed market champ in China, commanding roughly 75% of the market. However, Qihoo 360's reach continues to inch higher with every passing month. It's not a passing fad or a novelty.

In this video, longtime Fool contributor Rick Munarriz explores the positives and negatives -- for both Baidu and Qihoo 360 -- as the smaller but feisty search player gets ready to make its mark in paid search.