Baidu reports mixed results for Q2 while the market focuses on the length of the regulatory impacts.
The stock continues to trade favorably to domestic Internet companies not facing short-term regulatory impacts.
A couple of catalysts will provide ultimate upside for the stock once this difficult period passes.
Tighter regulation in China continues to impact Baidu (NASDAQ:BIDU) at the same time that Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) are still experiencing explosive growth. The global economy continues shifting aggressively to digital and especially mobile advertising that should ultimately benefit Baidu.