China's Search Engine Behemoth Baidu (BIDU) Falters in Mobile
Tweet Send to a Friend
Get Alerts BIDU Hot Sheet
Price: $96.80 -2.25%
Rating Summary:
8 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
8 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade BIDU Now!
China’s largest internet search provider, Baidu.com (Nasdaq: BIDU), Inc., dominates the space with close to 80 percent of the market share. However, it only has 34 percent of the market share in the mobile search market, with Easou, Tencent’s SoSo, and Google (Nasdaq: GOOG) owning 22, 21, and 11 percent of the market share in China respectively. These numbers were pointed out in a research report today by Oppenheimer analyst Andy Yeung.
With internet traffic rapidly moving to mobile handsets, Yeung thinks mobile internet poses both opportunities and risks for Baidu.
“After a relatively slow start, Baidu is moving aggressively to capture the lead in the mobile search/advertising market. Our research suggests that, while investments in mobile internet will remain a drag on Baidu’s earnings, it is imperative that BIDU invests more in mobile internet applications and services to secure its leadership position in the mobile search space,” he said.
Investor should remain cautious on Baidu in the near term while it makes the transition this year. However, Yeung is still positive on the stock based on BIDU's attractive valuation and its growing dominance in paid search. It should also do well if macroeconomic growth picks up in the second half of the year.
Oppenheimer has a Perform rating on Baidu.
For an analyst ratings summary and ratings history on Baidu click here. For more ratings news on Baidu click here.
Shares of Baidu closed at $117.38 yesterday, with a 52 week range of $100.95-$165.96.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
With internet traffic rapidly moving to mobile handsets, Yeung thinks mobile internet poses both opportunities and risks for Baidu.
“After a relatively slow start, Baidu is moving aggressively to capture the lead in the mobile search/advertising market. Our research suggests that, while investments in mobile internet will remain a drag on Baidu’s earnings, it is imperative that BIDU invests more in mobile internet applications and services to secure its leadership position in the mobile search space,” he said.
Investor should remain cautious on Baidu in the near term while it makes the transition this year. However, Yeung is still positive on the stock based on BIDU's attractive valuation and its growing dominance in paid search. It should also do well if macroeconomic growth picks up in the second half of the year.
Oppenheimer has a Perform rating on Baidu.
For an analyst ratings summary and ratings history on Baidu click here. For more ratings news on Baidu click here.
Shares of Baidu closed at $117.38 yesterday, with a 52 week range of $100.95-$165.96.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Compuware (CPWR) Estimates Trimmed, PT Raised at Jefferies
- Albert Fried Downgrades Pandora (P) to Market Perform
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewRelated Entities
Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
