Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese search giant (NASDAQ:BIDU) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Baidu's business and see what CAPS investors are saying about the stock right now.

Baidu facts

Headquarters (Founded)

Beijing, China (2000)

Market Cap

$12.81 billion


Internet software and services

Trailing-12-Month Revenue

$545.9 million


Co-Founder/CEO Yanhong Li
CFO Jennifer Li

Return on Equity (Average, Past 3 Years)



$491 million / $0

6-Month Return


Competitors (NASDAQ:SOHU)

CAPS Members Bearish on BIDU Also Bearish on


CAPS Members Bullish on BIDU Also Bullish on

Research In Motion (NASDAQ:RIMM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 13% of the 3,635 members who have rated Baidu believe the stock will underperform the S&P 500 going forward. These bears include detoyerofworlds and All-Star BSHumphreyII, who is ranked in the top 10% of our community.

Last month, detoyerofworlds warned Fools about bidding up for Baidu:

Yes China is attractive, but this is bordering on the ridiculous. There is no projection or metric that can make this one look attractive. I don't like either but given the choice between this and Google I'd back the latter, no contest.

In a pitch from two weeks ago, BSHumphreyII also recommends searching someplace else:

A high P/E plus some big volume declines recently strongly suggests that [Baidu's] run is over for the time being. The market looks like it's going to cool down for the fall, and that's especially bad for stocks like this one. This is probably still a decent stock for the long run, but now certainly isn't the time to get in. Take another look in a few months.

What do you think about Baidu, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Baidu, Sohu, and Google are recommendations of Motley Fool Rule Breakers. Amazon and Apple are Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.