China Fraud Freakout: Baidu at Risk?

After potential fraud surrounding New Oriental Education, Baidu investors may fear similar problems for the Chinese search-engine company. Another scandal will likely take down any Chinese Internet stock, as we saw with Tudou and Youku in the past. Eric recommends you stick to large, stable leaders like Baidu that have fewer fraud concerns to avoid getting caught in such a mess.

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Eric Bleeker, Jeremy Phillips, and The Motley Fool own shares of Baidu. Motley Fool newsletter services recommend Baidu and New Oriental Education. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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