Baidu (BIDU +2.6%) is reiterated a Sell by Citi's Muzhi Li, who lowers his price target to $90...

Baidu (BIDU +2.6%) is reiterated a Sell by Citi's Muzhi Li, who lowers his price target to $90 amidst increased competition from the likes of Qihoo 360 (QIHU) which has already seized 10% of the search-engine market share. Nomura disagrees, noting Baidu still has an 80% share of the growing market.

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Comments (3)
  • loveandpasion
    , contributor
    Comments (13) | Send Message
    What are the reasons for this bearish outlook? Do the markets or individual move with logic? Isnt competition good? Hmm Tell us why Muzhi Li why you think Bidu is a sell, other than that there is competition. What does Bidu lack that makes you think it will fall? Wasnt it just at 90? After it hit a high of 154? wasnt that correction good enough for you ?
    28 Jan 2013, 04:01 PM Reply Like
  • elad26
    , contributor
    Comments (16) | Send Message
    I think & hope mostly that Citi's analyst is right !


    I think he's right since Baidu is getting less & less search power in china which drives its advertising revenue source down as Qihoo increases it's search power to get a piece of that pie !


    Also important to mention the immense growth of Qihoo that got 10% of the search in only months after its search has launched !!!


    Also important to note that it struck advertising deal with Google early this month which was confirmed by Qihoo which was circulated until that confirmation.


    Lastly but most importantly to my opinion is that they also have their own advertising agency to develop as a revenue source to make money with less expenses so to optimize their profits & growth !!!


    That being said I'm very certain that this make Qihoo a much better investment than Baidu which will only shrink in time and have their power slowly taken as time pass by ... ^_^
    28 Jan 2013, 05:11 PM Reply Like
  • Espirirrion A Colunga
    , contributor
    Comments (3) | Send Message
    Forget about something about myself. The subject is Citis Muzhi Li. he continues to downgrade Bidu. I would like to see graphs & charts regarding growth, sales, and all the like to prove what you point that Bidu is a sell and show me how you get the price target of $90. per share.


    Dear Investers
    Read Seeking Alpha 1/28/13 See Bidu: What makes Baidu A STRONG BUY, written by Evanti Kurniawan. She explains everything. ( As a report should be written.)


    I'm thinking that Citi's Muzhi Li is just trying to get Qihu's stk. price up to benefit his own investment on qihu.
    29 Jan 2013, 10:44 AM Reply Like
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