Baidu is about to release earnings. Ponder the Bear Case Scenario:
Low monetization in China mobile search means returns can be meagre and far off. Cheap smart phones equate to small e-commerce revenues.
Active expansion into non search arenas may jeopardize margins and distract management focus from established cash cows.
Alibaba offers pay for performance search for e-commerce customers. Baidu will have to compete against the concept which is deliciously alluring to those new to e-commerce.
George Gutowski writes from a caveat emptor perspective.