Baidu Stock Looks Undervalued


Markets have moved slowly in the last days, mostly due to fall in tech stocks. That includes, data leaking scandal on Facebook (NASDAQ: FB) as well as suspending self-driving cars of Nvidia Corporation (NASDAQ: NVDA) after a deadly accident. These events among others have badly affected the value of stocks.

However, observing the past uncertainties, it is clear these companies are still backed by stable long-term fundamentals. The solution now is to discover large growth technology stocks, which have immersed in an undervalued area.

For instance, one interesting stock is Baidu Inc (NASDAQ: BIDU), a Chinese company and a digital search giant. Baidu’s stock has recorded bad days lately, and it has moved down from $265 to $220 in just several days.

But, the company stocks seem really undervalued at such low price. Baidu has steady growth prospects all over China’s mobile and digital advertising markets. These prospects are also underpriced at $220.
So, if you are searching for a stock with good potential, then BIDU stock is a great place to look at.
Baidu is very similar to Alphabet Inc (NASDAQ: GOOG), and it is often considered as its Chinese counterpart. And that is a fairly convenient comparison.

Over the last ten or fifteen years, Google has become a basic pillar of the Internet. In fact, the world web is almost a nonexistent thing without the search engines. That is the reason why Google receives more than 3.5 billion searches every day.
Besides, Google is a hundred billion revenue company’s rising at 20%. Baidu will hardly ever reach that level. It is mainly focused on the Chinese market, while Google is popular and used all over the world.
China’s digital advertising market is going to significantly grow very soon, mostly because of the large rise in consumerism, which is presently taking place. The country’s big middle class is taking advantages of growing incomes and afterward urbanization.

The urbanization leads to an expansion in digital usage, commerce, travel and other consumer-related things. But, the trend is only going to start. 50% of the country’s consumers are using the internet versus 90% of consumers in the United States.

It means Baidu stock growth rate is going to stay for a long time. In the worst case scenario, an estimated growth rate of the company’s stock is 20 percent in the next few years. Currently, its stock looks undervalued considering the potential for the huge growth through digital advertising markets in China.

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