Source: Shutterstock Like BABA, Baidu (NASDAQ:BIDU) has taken its playbook from an American tech firm. In this case, we’re talking about Google (NASDAQ:GOOG,NASDAQ:GOOGL).
BIDU operates a search engine just like GOOG. And just like GOOG in the U.S., the Chinese firm is the top dog when it comes to search in the nation. Right now, BIDU controls more than 80% of the search traffic in China. With more than 731 million internet users — a figure that is growing as access expands — BIDU commands the attention of a lot of eyeballs. This means there’s plenty of ad data to be had. And like GOOG, those ad sales pull in a ton of cash. Last year, Baidu’s clocked in roughly $14.88 billion. That was a 28% year-over-year jump and mostly due to the firm’s ad sales.
Meanwhile, BIDU has continued to expand into some other lucrative areas. This includes video with its iQiyi (NASDAQ:IQ) subsidiary as well as A.I. and autonomous vehicles. This all should sound very familiar to Google stock investors. The best part is, most of BIDU’s operations shouldn’t be affected too heavily by the trade war. People will still search for funny cat videos and the news regardless of how steel prices are reacting.
Under that guise, Baidu could be a bargain among Chinese stocks. With its 36% estimated EPS growth in 2020, BIDU stock trades at dirt cheap forward P/E of just 11.5. No wonder why fellow InvestorPlace contributor Bret Kenwell thinks BIDU can rally to $250 per share.
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