Baidu Investors Should Love These 2 Moves
Investing in Chinese Internet stocks certainly isn't for the faint of heart. However, certain larger companies like Baidu or Ctrip.com might prove appealing to investors, especially after the recent sell-off that's snakebitten tech stocks in general.
A perfect example of the short-term pain investors in these high-growth companies often encounter, Baidu's shares remain down around 10% since around just a month prior, even though my confidence in the firm remains as intact as ever. On the other hand, Ctrip.com stock has rallied nicely over the last few months, helping offset some stiff losses from earlier in the year.
Both Ctrip and Baidu are perfect examples of how quickly these kinds of Chinese Internet investments can pinball up and down. And another recent storyline between Ctrip.com and Baidu helps to highlight one of two reasons why investors should love Baidu these days.
Baidu and Ctrip.com linking up?
Word broke recently that Ctrip.com and Baidu are currently in discussions to combine Ctrip.com's core travel booking business with Baidu's majority-owned investment Qunar through some kind of merger, acquisition, or investment.
The deal makes perfect sense for Baidu, Ctrip.com, and Qunar as the companies could together become an even more powerful force to be reckoned with in the booming Chinese online booking space. And in the video below, tech and telecom explains why the Baidu/Ctrip.com/Qunar deal and another storyline are perfect examples of why investors should still be bullish on Baidu.
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The article Baidu Investors Should Love These 2 Moves originally appeared on Fool.com.Andrew Tonner owns shares of Baidu. The Motley Fool recommends Ctrip.com International. It recommends and owns shares of Baidu. 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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