Baidu: Buy China-Induced Weakness
- Baidu continues to slump to multi-year lows.
- The Chinese company has growth opportunities outside internet search in voice assistants and self-driving cars, among others.
- The stock remains exceptionally cheap in the large-cap technology sector as margins rebound with the exit of transaction-related businesses.
Google CEO Pichai announced that the company has no intent of entering the Chinese search market. Baidu isn't down due solely to the Google threats, but a large part of the decline is based on this issue.
Baidu is actually down about 1% to $177 here. The market isn't paying attention because the only real long-term risk is Google. The stock is now down over $100 from the highs back in May.