To be fair, it's really Bidu's massive earnings and revenue growth (expected 100% year over year) that sustains its higher p/e than Google (21% expected earnings growth y over y) or Yahoo (flat growth except for Alibaba holdings). Google's PEG (my favorite metric) is approx 1.0, whereas Bidu's is approx 0.6, with 1.0 being the traditional buy cutoff.
Exactly! Bidu has a lot more growth potential than Google. I think you can make money short. BIDU is volatile. I have owned it since 7. I think it is a great company and I also think long term this will be one of the biggest companies in the world. They have their hands into way too much and the Search Engine will only fuel the growth in the future. You can short and make money; but the long term, this company is a beast.