Baidu - Overvalued?

Discussion in 'Money & Investing' started by mermaidboy, Jan 1, 2008.

  1. mermaidboy

    mermaidboy Registered Member

    I can't help but think that Baidu is grossly overvalued due to its parallels to Google and the fact that it's Chinese. Is Baidu really worth $13.14 billion, being a company that provides only a primitive search engine and links to illegally download music among little else? Baidu was recently acquitted from a lawsuit accusing it of copyright infringement because the Chinese court dismissed it. Is the Chinese government's support enough to ensure its spread and success in international markets?

  2. Kazmarov

    Kazmarov For a Free Scotland

    I think that the recent investment belief that China is the place to put your money is so rabid that it's brought a glut of investors into the mix, who are jacking up the stock price. I don't think it's worth that, however there are many investors who have invested in China and gotten excellent returns think that high tech will be much like manufacturing.

    I think they will learn that this is not the case.
  3. SuiGeneris

    SuiGeneris blue 3

    For any long term investor, I think you're right. Baidu isn't as perfect as the market wants it to be. The support of China can only push it so far before it falls on it's face.

    Short term investors (especially those who popped in early) are going to see great returns though, theres no doubt about that. Which is another reason why the price just keeps going up. I'd say cash in now, wait a bit then drop the load.

    But hey what do I know, I'm no broker.

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