It may have faced a falls this year due to a slipping number of sales and its growth itself. It also had troubles getting clients who would be interested in using their advertisement sector for the reason that its ad policy got stricter than the usual. But that shouldn’t hinder you from buying Baidu stocks. They can bounce back and how you ask? Here are the reasons why.
Let us go far from what’s abovementioned. The sales of the company got slow in growth and low in value but fear not, that’s just temporary.
More on the values, the company annually fell 0.7% in revenue to a value of 2.7 billion dollars causing a big shock to their investors who were expecting a 30% rate but there’s a reason why. It’s because of their temporary headwinds.
Another reason why as to it fell is that Baidu sold its travel agency which holds services online. Qunar was sold by the company to its rival Ctrip. The company simply just traded it off to gain a 25% stake from Qunar in Ctrip.
Government ruling about ads affected the site as well. The chinese government warned the company about their ads that they should maintain from marketing misleading ads and thus resulting to a more restricted regulation of the companies’ advertising sector.
With all of this stuff happening, one must not fear in investing in the search engine company. It is expected to grow up to 6 percent next year and surge to 20 percent after that year. It is the biggest search engine in china after all. It covers 80 percent of the general population of the asian country’s internet search engine.
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