look, baidu definitely gets caught up in these price swings, but i really just see lack of focus lately. they swap qunar for ctrip. they want to set up a bank with citic. today they want to sell insurance with allianz. then there's maps etc, online payments, ai etc. they seem to be trying to pull a google, but they are all over the place. Google didn't open a bank or sell insurance to the public. little things that complement your core is one thing. big ventures that are businesses on their own looks either like a confused tech company, or an investment/holding firm that doesn't deserve a tech sized multiple. i really can't say exactly how the stock goes the next few weeks, but these plans we're seeing lately seem like they're reaching. they shouldn't need all that extra distraction of large side businesses. just imho.
i'm short so take this with a grain of salt, but i find it curious first of all that Baidu is getting its feet wet in so many different areas. Citic's president was just arrested recently for fraud so i'd be concerned about Baidu working with them. the extent of their branching out suggests that they don't see reason to invest in search and ads like Google. there should be plenty of room to grow in search without investing so heavily in other areas. any investment in a new area is a bet. the safest bet is always with what's worked to date.
i was thinking, "well maybe baidu will buy TomTom" but not sure how likely that is since they were already joining up with Uber to make a bid on Nokia's Here unit. Here went for 3 billion. TomTom is already $2.5 billion and probably wouldn't sell for less than 3 billion either. So it's probably worth more than Here. While maybe Baidu might grab TomTom after having snagged this big deal, it seems for now Baidu has lost out on some business.