guide language: the United States financial website TheStreet according to on Saturday, on Friday, baidu (Nasdaq: BIDU) in the 12 months to share prices fall by 36%. Industry insiders speculated that for value investors, baidu may now is very attractive. But the analysis thinks, baidu, relative to the investment in the current price level, the investment of Google is a better choice.
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New York Frank Capital, a fund manager Brian Frank (Brian Frank) said: “compared with $135 in a few months ago, there is no doubt that baidu down big.” Frank Capital manages some $50 million in assets, is good at stock investment value.
baidu’s shares fell 7.9% on Friday, closing at $85.02. Frank said, in the past 12 months, baidu’s enterprise value (EV) and interest tax, depreciation and amortisation (EBITDA) ratio of 13.7 times. In contrast, Google the ratio of 13.4 times.
frank said: “if I buy baidu stock, so there is no doubt that need lower price, because I want baidu is much cheaper than Google. Google’s business on a global scale is more spread out, and with Android, Google in the smartphone market is in the lead. Google for the development of the Android system means that the company has a big advantage, can the stock is more expensive than baidu.”
he said: “baidu is in the direction of the development. Again after a period of time, I will do with baidu. But baidu is not such a success.”
Google’s shares fell 1% on Friday, to $801.42. Over the past 12 months, Google’s share price has risen by 30%.
Maxim Group in New York, an analyst at what Ike (Echo He) currently on baidu’s stock rating to “sell”, target price of $75. He predicts that baidu’s profit margins will continue to slide, and revenue will be under pressure. Baidu need to invest their resources on the one hand, to maintain the top position in the PC market, on the other hand also need to promote the development of mobile business.
what Ike said: “even if baidu’s shares fell, I still don’t recommend buying the stock, as long as baidu’s lower margins did not stop. Low price, low valuation is not buy shares the ideal condition. At a low valuation, but profit margins remain stable or began to ascend, this is the value investors buy point.”
as a result of macroeconomic growth, movement and the fierce competition in the PC business, search and mobile search for PC eroded, baidu’s revenue growth is still slow down from the PC. In the PC market, qihoo has become a powerful rival baidu. And in the field of mobile business, baidu need to compete with companies such as tencent.
in the first quarter earnings call on Thursday, baidu management reiterated that will continue to invest in mobile business development and marketing, cloud computing services, and buy a few small companies, to seek in the mobile search and the growth of the online video market. However, baidu still need to invest more in sales, marketing, to ensure that the current in the PC of the search market. (d)