In this video, Motley Fool tech and telecom analyst Andrew Tonner talks with Fool.com editor Austin Smith about Baidu, the overwhelming market leader in China's search industry. Andrew says that while he's a Baidu shareholder and is long-term bullish on the stock, a good investor should always weigh the potential bear perspective as well, and this is what he does for us today.

While Baidu does have a huge potential for market growth in China, it's somewhat tied to the Chinese economy, which has experienced slowing growth as of late, a factor that could spook some investors. Also, Baidu is large, but not necessarily invincible, as some of the trailing market-share players are working to innovate, and hoping to erode some of Baidu's market share.

Finally, Andrew highlights one issue facing the entire search industry at the moment, one that many companies are unsure of how to proceed on: mobile.


Regardless of your short-term view on the Chinese economy, there may be very real opportunity in Baidu (a.k.a. the "Chinese Google"). Our brand-new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

The article 3 Reasons to Sell Baidu originally appeared on Fool.com.

Andrew Tonner and Austin Smith own shares of Baidu. The Motley Fool owns shares of Baidu and Google. Motley Fool newsletter services recommend Baidu and Google. 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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