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Monday, August 08, 2005

Chinese Internet Sector: Baidu.com, 3721.com

Google signs up first AdWords partner in China
Reuters
Monday 8 August 2005, 0:25am EST
SHANGHAI, Aug 8 (Reuters) - Google Inc. has agreed to sell its popular AdWords advertisements in China through a local firm.

China Enterprise, a provider of IT services and a subsidiary of Hong Kong-listed Sino-i Technology Ltd. (0250.HK: Quote, Profile, Research), has been authorised to sell the Google AdWords service -- used in markets around the world -- in China.

Rival Yahoo Inc. (YHOO.O: Quote, Profile, Research) made its big move into China in 2003, with the $120 million purchase of a popular local search site, 3721.com.
OK, what does this article tell us? First, Yahoo made a real bargain deal with 3721.com, paying only $120 compared to Baidu.com $4 billion market cap. According to Alexa.com, the traffic rank for baidu.com is 6, and the rank for 3721.com is 14. By the way, 3721.com has mp3 search as well.

Next, it's really tough for Baidu to beat China Enterprise, the local Google AdWords provider. I tend to believe that Google has more money and possibilities to make a revenue than Baidu (although, Google owns 2.6% of Baidu.com also). Taking this into account, why is Baidu.com trading at 35 times at sector revenue?

See also:
Reuters: Google signs up first AdWords partner in China
Roberto's Nasdaqtrader: Google Adwords Lands Chinese Partner

3 Comments:

Anonymous home equity loans line of credit said...

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5/06/2006 08:35:00 AM  
Anonymous Anonymous said...

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6/10/2007 06:09:00 AM  
Anonymous PENNY STOCKS said...

Chinese stocks are excellent values.

12/03/2012 02:36:00 PM  

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