Baidu soared on solid Q4 results and guidance for Q1.
The Chinese Internet search giant will benefit from multiple efforts to remove costs from the financials.
The recommendation is to own Baidu as operating margins rebound going forward.
Despite obvious value, Baidu (NASDAQ:BIDU) traded near its lows over the last few months. The fears over the Chinese economy have overshadowed the company's incredible growth rates and the shift in the economy towards services and domestic consumption that benefits Internet-based businesses.