baidu stock worth (NASDAQ:BIDU)$200?To fully understand this question, you have to first of all know and understand what Baidu is and why it is so successful. In short, Baidu is in China what Google (NASDAQ:GOOG) is in the rest of the world. It is wildly successful because it reaches a 1-billion-plus market that Google cannot touch because of Chinese Internet censorship laws.
After ten years of development, baidu stock shares rose 1500%. But since last year, its share price has been stagnating. Baidu has created the huge wealth for many investors, but its share price to $200 per share, how much the rise in the space?
The first step: income
Baidu business field infiltration: maps, video, news, tourism, entertainment, securities, and room service. But baidu 99% performance from it in the search results page to provide paid services. Is the advertising business, make the baidu stock astonishing growth.
Step 2: spending
Baidu has the following three major spending:
(1) operating costs, including the cost of extracting search traffic, buying a server, pay taxes and spending which is formed by the broadband fee.
(2) the employee’s salary expenditure (divided) under the sales management fee
(3) research and development expense
Step 3: for the growth of investment
No company can out of the investment and development, baidu is no exception. Baidu’s reinvestment mainly has two forms: capital spending (often referred to as capital) and acquisitions.
While Google stock is presently a lot more valuable than Baidu stock, there are two compelling reasons why investing in Baidu is a much better idea than investing in Google. As one professional investor has noted, Google has pretty much reached its “saturation point.” This means that the odds of Google getting large numbers of new users is slim to none. However, because there are still tens of millions of Chinese users who have yet to tap into the Internet’s full potential, Baidu has the potential to grow exponentially in the years ahead.