More on Citi's two-notch downgrade of Baidu (BIDU -5.7%): analyst Ravi Sarathy thinks Baidu's...

|By:, SA News Editor
More on Citi's two-notch downgrade of Baidu (BIDU -5.7%): analyst Ravi Sarathy thinks Baidu's P/E, which has already compressed plenty this year, will eventually be in-line with Google's, due to the impact of soft mobile search monetization. He also sees Baidu's margins contracting due to ramping expenses, and notes Q3's Y/Y revenue growth rate was the lowest seen by the company since Q1 2010. (more on BIDU) (Q3 transcript)