Out After Close; Motley "WHY I LOADED UP ON BIDU" posted.
Motley Fool JUST OUT " Why I Loaded Up On BIDU." /// link
Why I Loaded Up on Baidu
By Austin Smith | More Articles | Save For Later
December 4, 2012 | Comments (0)
Baidu (NASDAQ: BIDU ) trades for 21 times earnings, narrowly cheaper than Google (NASDAQ: GOOG ) , yet Baidu is growing 50% faster than Google and has promising macro tailwinds in its favor.
Given that the company commands 80% of the search market in the country, and half of China's population still doesn't have Internet access, it's easy to see how Baidu could continue to grow for years to come.
But that's not all -- the company is also make big moves in the mobile space and looking to secure a similarly dominant position in that arena. They'll be launching a low-cost smartphone which should be a compelling proposition for a country where the average annual income is still around $4,000.