Credit: China's biggest search engine is looking to expand into Latin America. According to a February 15 report on the Chinese Ministry of Commerce web site, Baidu ( BIDU , quote ) is opening an office in Sao Paulo, Brazil.
Baidu has been on a tear this week, releasing 4th quarter results yesterday that showed revenue and profit gains of over 80%. 2011 revenue was $2.3 billion, an 83% increase, while profit was up over 91% at $1.2 billion. Baidu's stock closed yesterday at $141.83 per share, up 2.54%.
That said, Baidu has been growing in the sheltered environment of the Chinese internet. A Latin American venture would put it head-to-head with Google ( GOOG , quote ), which is very strong there. Google had over 500 employees in Latin America in 2011, and dominated the search market with over 90% of all searches.
IT critic Hong Bo was skeptical of Baidu's chances , telling China Daily that "while competing with its international counterparts, Baidu has no obvious advantage." He cited unsuccessful ventures such as Japan, another search market dominated by Google.
Investors looking to bet on both Google and Baidu should consider the First Trust NASDAQ-100-Technology Sector Index Fund ( QTEC , quote ), which carries both stocks in its portfolio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
