Wall Street Journal Google exit for Baidu a bright
news April 30th, "Wall Street Journal online edition published an article today, Google China exit market, Baidu form is really excellent, but to accept the left Google market share, more efforts are needed.
Baidu’s market share is dramatically increased rapidly, the first quarter of this year, Baidu in the Internet search market revenue share increased to 64%; and a quarter of its share has dropped to the lowest level since 58.4% years. "The leadership of Baidu in the search market impregnable" — in addition to Google, share none of Baidu’s competitors in the market of more than 1% Chinese search.
at the same time, Google’s share fell from 35.6% to 30.9%. Although it is expected that other Chinese Internet Co will ride Google’s rise and decline, but from the data, currently only Baidu is the only winner. Baidu chief executive Robin Li said on Thursday that the site attracted more than 75% of China’s Internet search traffic.
insiders suspect that the degree has eased expectations that it is moving towards a new advertising system, which will slow growth in sales revenue. But it turned out to be too cautious: in the first quarter of this year, Baidu single customer revenue grew 34.1%.
analysts said Baidu’s problem is that the valuation of the Chinese Internet stocks in the same stocks in the ultra-high level. This year, Baidu’s share price rose 51%, compared with the expected profit to earnings ratio of up to 52 times, once the accident, the decline is very large. At the end of 2008, for example, China’s CCTV accused Baidu of manipulating its search results, which fell to only 20 times its earnings relative to expected earnings, according to data provider Starmine.
but for now, Baidu is still a smooth face. Those who wish to take over Google’s gun, as Baidu’s main challenger, will also need to spare no effort to catch up. (end)