When investors hear that about 44% of the Chinese population is connected to the Internet, a company like Baidu immediately sounds promising. However, the rate that Chinese Internet users are coming online may begin to stall, which could threaten Baidu's growth prospects. Couple this with increased competition from companies like Qihoo 360 , and all a sudden the Baidu growth story doesn't sound as exciting. In this video, Motley Fool contributor Steve Heller discusses the long-term headwinds Baidu is up against and what it may do in response to slowing Internet user growth.
Regardless of your short-term view on the Chinese economy, there may be opportunity in Baidu (aka 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 Is Baidu in Trouble? originally appeared on Fool.com.Erin Miller has no position in any stocks mentioned. Fool contributor Steve Heller owns shares of Google. The Motley Fool recommends Baidu and Google. The Motley Fool owns shares of Baidu and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.