Stock #3 – Baidu (BIDU)
Baidu (BIDU) is the leading Chinese-language Internet search engine, with more than 70% of China’s search market. This is a big-time stock with a big-time share price of nearly $400. But don’t think this means the company can’t gain any more ground. Shares have doubled since April 1, when they were trading at an already pricey $174.
Some people say this company is China’s Google, but in fact, this company is faring even better than that iconic company since Google’s head in China recently resigned after failing to challenge BIDU. Baidu earns nearly all of its revenue through online advertising services but also operates a network of third-party websites and online communities.
The numbers prove BIDU is a powerhouse. In its latest quarterly report in October, Baidu reported a 42% jump in Q3 earnings. The company also announced a search deal with local carrier China Unicom, dealing a blow to Google, as the companies race to grab a slice of China’s growing mobile search market. This growth strategy continues to pay off, since Baidu reported an active online-marketing customer base of 216,000 for Q3, an 11% increase from Q2, and that helped drive up the amount of revenue per customer by 26% on the quarter.
You may think $400 per share is a lot to pay for a stock, but with explosive growth like this, you are sure to see a return on that investment. Buy Baidu today.
- Poll of the Day