Chinese, especially IT enterpreneur, are excited about Baidu's skyrocketing price. Someone even praised it as the beginning of China to grow up. But see how market commentator in U.S. say about Baidu's price, you will get a conclusion on what is really happening now.
Mixed between the hot "China" and "Google", Baidu should know where its position is. This is not the era of Internet bubble, or maybe the second one.
The most cute one is this:
"This is a `son-of-Google' investor mentality. Everyone remembers they could have had Google at $85 and don't want to let it happen again."
---David Menlow, president of IPO Financial
5 comments:
There are two quite contradicting things about Baidu:
1. It prepared quite well in against with Google as they cleverly split those shares and not letting Google to have a chance to take over. This impressed me a lot but definitely need consistency on keeping it.
2. In terms of its P/E ratio, the price is really crazy. If it still goes high...I agree there will be another bubble again.
Wonder what others might think?
Oh, KC, that's interesting. How you see Baidu preparing quite well in against Google's take over?
Most of the time, I think Baidu hijack google's market in mainland China.
It is because google did not censor the content which is required in mainland China. PRC government enfores it by resolving google to Baidu portal. Hence, nobody can access google within the border. Copying the model of google strengthens Baidu.
right, exactly. another thing to add: Google is not doing well in searching Chinese articles, I found. SO maybe this will become its advantage.
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