Baidu (BIDU) Following in Google (GOOG) Footsteps
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Price: $95.78 +1.45%
Rating Summary:
33 Buy, 7 Hold, 2 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
Rating Summary:
33 Buy, 7 Hold, 2 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 16
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On Monday Baidu, Inc. (Nasdaq: BIDU) announced that it has signed a Memorandum of Understanding on the Proposed Acquisition of all equity interests in mobile app store 91 Wireless Websoft Limited from NetDragon. In the view of Goldman Sachs analyst Piyush Mubayi, Baidu is taking a page from Google (Nasdaq: GOOG).
"Baidu appears to be pursuing the proven path of Google, whose share price has achieved record highs driven by its robust mobile presence on a global basis," said Mubayi. "We note YouTube and Google Play (Android app store) are Google's pillar products."
Mubayi thinks Baidu's move puts it in a stronger competitive position versus other mobile platforms such as Tencent's Weixin, and Qihoo's 360 (NYSE: QIHU) Mobile Assistant.
"We expect mobile gaming to be the primary revenue driver behind these assets. We believe the successful integration of 91 Wireless and a continued constructive relationship with game publishers are crucial to unlocking commercial opportunities. Baidu does, however, lack the execution experience in gaming," added the analyst.
Goldman Sachs has a Neutral rating on Baidu with a price target of $91.00
For an analyst ratings summary and ratings history on Baidu (NASDAQ: BIDU) click here. For more ratings news on Baidu click here.
Shares of Baidu closed at $101.59 yesterday.
"Baidu appears to be pursuing the proven path of Google, whose share price has achieved record highs driven by its robust mobile presence on a global basis," said Mubayi. "We note YouTube and Google Play (Android app store) are Google's pillar products."
Mubayi thinks Baidu's move puts it in a stronger competitive position versus other mobile platforms such as Tencent's Weixin, and Qihoo's 360 (NYSE: QIHU) Mobile Assistant.
"We expect mobile gaming to be the primary revenue driver behind these assets. We believe the successful integration of 91 Wireless and a continued constructive relationship with game publishers are crucial to unlocking commercial opportunities. Baidu does, however, lack the execution experience in gaming," added the analyst.
Goldman Sachs has a Neutral rating on Baidu with a price target of $91.00
For an analyst ratings summary and ratings history on Baidu (NASDAQ: BIDU) click here. For more ratings news on Baidu click here.
Shares of Baidu closed at $101.59 yesterday.
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