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Baidu’s Stock Soars Following Google China News

Baidu shareholders see 13.7 percent gain

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Reactions to Google’s announcement about a possible withdrawal from China have been mixed so far; there have been objections from individuals who think its absence will deprive the Chinese people of information, while others approve of what they consider a moral stand.  But Baidu’s investors probably aren’t too conflicted, as the company’s stock imitated a bottle rocket today.

Today, Baidu’s stock gained 52.99 points, which works out to 13.71 percent.  That’s the sort of improvement many investors would be happy to see take place over a full year, especially considering how the recession has lowered expectations.

Baidu’s stock didn’t soar in accordance with any sort of market trend, either.  The Nasdaq rose just 1.12 percent today, and the Dow gained an even less impressive 0.50 percent.  So this is just a matter of many people realizing that Baidu would perform better than ever in a Google-less China.

Google’s stock, meanwhile, was less fortunate, sinking 0.57 percent today.  Although we should note that multiple factors could have influenced both developments.  (One more side note: the numbers in the graph are off because it covers a slightly different timeframe.)

Anyway, it should be interesting to see how these stocks continue to fluctuate as the Google China drama plays out.  One way or another, it’s likely that a lot more money will change hands before the end.

Related Articles:

> Some Interesting Points About The Google China Situation

> Google May Quit China

> Google Bows To Chinese Authors On Book-Scanning

Baidu’s Stock Soars Following Google China News
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  • http://www.lexolutionit.com Maneet Puri

    If Google really pulls itself out of China, it will be great news for not only Baidu but also a slew of other search engines and applications. And along with the search engine, Chinese people would also lose access to a whole lot of Google applications as well. This would be life a breath of new life for a host of other services, paid or otherwise, that provides users with the similar provisions..

  • http://moonlighthk.com/ Peter

    Google’s solid footing in China made it a sure bet to eventually dominate the Asia market place, with already strong share/reach in AU, SEA, IN and the lion’s share of advertisers in EU/US regions. Prior to last week, it was only a matter of time before the efficiency of the Google engine/ad-platform swayed share in other N. Asia markets like KR/TW/HK/JP – to some degree this has already started in the latter 3 markets.

    But with the possibility now that Google China will pull out, leaving Baidu to dominate a market which will arguably be THE most important one for the next 100 years, things have changed considerably and the title of “leader” in Asia search share will become even more unclear. Exciting times indeed!

    It’s to be seen however if this will benefit Chinese users. There’s no denying that Google is the leader when it comes to indexing what’s on the web and making it available (globally). And while it is true that if they pull out, smaller players will have more of the pie as will bigger players, will those smaller players be better at the fundamental task of providing users with a good result? We shall see.

  • http://www.TheInternetTimeMachine.com Guest

    Google and China are bringing up a 21st century battle of democracy and freedom verse Communism and restricted personal freedom. When we started using cloud computing systems we saw the HUGE area of security problems being created in cross country internet usage. Thrown in that the entire world is “outsourcing” computer stuff to Southeast Asian countries, and you have a plan for these socio-technology issues going to ahead. We study search demand/supply trends from around the world to find profitable niches and products. A niche, or hot predictions, is not just a demand side issue, but a supply/demand curve. If you predict IPHONE apps will take off, and there are already 100,000 aps, then you aren’t going to hit that one. If you see that demand for cell phone radiation shields is going nuts and there are only two suppliers, then you can be pretty sure that it will be a good year for those 2 supplies. The software at www.TheInternetTimeMachine.com studies both the demand (search volume) and supply (think “results” in Google). The Google Phone is generating much more buzz right now then say the Apple Tablet.
    Cheers,
    Curt
    Here is a video on what I mean.. http://bit.ly/SupplyDemandCurves

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