Baidu.com, Inc. (ADR) (NASDAQ:BIDU)
CAPS Rating:
Baidu is the leading Chinese-language Internet search provider.
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Baidu is the leading Chinese-language Internet search provider.
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Two problems here:
1. Over evaluated with a monster P/E currently over 90.
2. I believe China will eventually except Google as the nation continues to become more liberal. Bidu doesn't have the smarts or power to stand up to Google's experience.
china does not let in outside vendors into their domestic market...example Chinese computers,,,,
bidu kicks googles butt, look at the cap per employee, or any xxx per employee stat
I have to respectfully disagree. The counter to your 'two problems':
1. P/E over 90. With more importantly a forward P/E of ~40. All aggressive growth companies have inflated P/E's, you're paying a premium for future profits and growth. That's the game.
2. Google. So, you're saying there is no room for a competitor to Google? Baidu is 1/6 the market cap of Google...it certainly has strong potential growth prospects.
I'm not saying I'd invest my own money in BIDU, as it really doesn't fit my criteria for stock ownership at the moment. BUT, for CAPS purposes it's a solid play. I would either be long or nothing at all. Being short this stock seems like a lose/lose to me.
im adding to my position here till the first friday of Jan 2011 got 1200 more at 99.45
hmm, seems to me google smarts got it kicked out of china while back
True they don't have the smarts or power of Google, but as far as the P/E, like Pter Lynch said, "I'd rather pay a 100 p/e for a 50% grower than a 10 p/e for a 5% grower." and at the moment rev & eps growth is on Baidus side.
1) PEG (5yr expected) = 1.32 vs 1.18 for GOOG, given where BIDU is in its "life cycle" vs GOOG i'd say it was under valued
2) China and liberal is an interesting combination. Google will stand by its principles and China will stand by its censorship at least for long enougth for BIDU to grow substantially over the next 5 yrs.
Recently announced expansion into Japan mkt as well. Buy point coming up at 109
China won't accept Google, they are to proud to allow an outsider to dominate a market.
Not gonna happen.
another thing to add to the google argument - chinese language search should be really difficult for a foreign company to master - sure Google probably has tons of native chinese-speaking people working on their algorithms - but for this, I'm betting on the native company with the larger market share. not to mention that the gov't censorship issue won't be going away for a while, if ever.