Baidu will make shareholders happy - analysts

By IVCPOST Staff Reporter

Jul 29, 2013 06:05 AM EDT

Baidu, a corporation that runs the biggest search engine in China, gained investors' interest when its shares traded up to 17% higher last week. Analysts said that there are many reasons for Baidu's shareholders to be happy.

Baidu finalized a plan that would let it remain relevant in the era of handsets. Baidu earned more than 10% of its total revenue from mobile. Its acquisition of 91 Wireless also promised the company with so much future growth. Baidu estimated that there are 40 million medium-sized and small companies in China. All of these businesses could be its potential marketing customers. As of last quartile, Baidu reported 468,000 online marketing partners. The figure denoted around 33% upsurge. By the end of second quarter, Baidu already have US$5.55 billion in cash.

Moreover, Baidu's research and development expenditures jumped 73%. Analysts believed that Baidu's investment for its future would be the search engine's gain. By investing more, Baidu's revenue would grow so much that it would already be a threat to its international counterpart, Google.

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