Home » Stocks » Bear Case Scenario for Baidu $BIDU, $GOOG, $FB, $AMZN, $TCEHY, $BABA, $RENN

Bear Case Scenario for Baidu $BIDU, $GOOG, $FB, $AMZN, $TCEHY, $BABA, $RENN

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.