2 Signs that Baidu is in Trouble

There has been a lot of press lately about Qihoo (NYS: QIHU) , a Chinese antivirus company that's recently entered Baidu's (NAS: BIDU) turf by introducing its own browser and search engine. Baidu has had a long healthy run of being the "big fish," but things may be changing for the company.

Chinese search companies met today with a government-sponsored trade group to discuss a code of conduct for the search market, the end result being an agreement to "maintain fair competition and a fair and orderly market environment."

With Qihoo dominating 8% of the search market in less than a year after launch, this small company is nothing to laugh at. Now that it knows the government will support a competitive search landscape, rather than tacitly backing Baidu's monopolistic success, that 8% could get a lot larger in a short scale of time. Fool.com analyst Lyons George has the full scoop on the big fish vs. the little fish in the video below.

Regardless of your short-term view on this story, there still may be opportunity in Baidu (aka the "Chinese Google"). Our brand new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

The article 2 Signs that Baidu is in Trouble originally appeared on Fool.com.

Lyons George has no positions in the stocks mentioned above. The Motley Fool owns shares of Baidu, Facebook, Google, and Yahoo! and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Baidu, Facebook, Google, and Yahoo!. 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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