A common theory in the technology world is the concept of investing for the future. Typically, these phases take place prior to a company going public, but lately several large-cap techs have started campaigns to dramatically increase expenses to capture mobile growth. Ironically, the market has chosen to punish one stock while giving the other a big pass. Not to mention, the mobile transition has been a constant profit disruption to most major firms, as the initial traffic flows don't offset the lower monetization levels.
Over the last couple of weeks, both Baidu (BIDU) and Facebook (FB) have reported that margins were greatly impacted by ramped up spending for mobile. The only difference is that Facebook continues heading to recent highs while Baidu languishes at multi-year lows, appearing as if the stock might head much lower.
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