1 Internet Stock Crushing Expectations, 1 Falling Short

The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.

In today's edition, Jeremy and Eric look at some developments from this earnings season in the Internet space. In China, Baidu once again beat earnings, while Sohu took it on the chin. While Baidu keeps posting heady margins and huge sales gains, Sohu is seeing endeavors like online video and search weigh down its bottom line. If you're looking at Internet stocks, especially in China, how worrying are deteriorating margins?

Right now there's a data boom that will lead to a quadrupling of Internet traffic by 2015, and China's a key growth area in this trend. The Motley Fool has compiled a new report called "The Motley Fool's Top Stock for 2011," which highlights a company that's set to profit handsomely from the booming amounts of data flowing across the Internet, no matter which company delivers the video. Thousands have requested access to this special free report, and now you can access it today at no cost. You can get instant access to the name of this company by clicking here -- it's free.

At the time thisarticle was published Eric Bleeker and Jeremy Phillips own no shares the companies listed above. The Motley Fool owns shares of Microsoft, Apple, and Google. Motley Fool newsletter services have recommended buying shares of Baidu, Apple, Sohu.com, Google, and Microsoft; and creating a bull call spread position in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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