Baidu.com, Inc. (ADR) (BIDU) Feeds the Bad News Bears – Qihoo 360 Technology Co Ltd (QIHU), Groupon Inc (GRPN)

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Google Inc (NASDAQ:GOOG) — which is not only the company that Qihoo replaced in launching its own search engine, but is also growing at a much slower pace than Baidu.com, Inc. (ADR) (NASDAQ:BIDU) — is trading at higher profit multiples.

This doesn’t mean that the bears are wrong. If Qihoo 360 continues to gain market share or if Baidu’s growth gets tripped up as a result of company- or country-specific pitfalls, it wouldn’t be a surprise to see the bears win again. However, given the growing record number of speculators betting against Baidu.com, Inc. (ADR) (NASDAQ:BIDU), it also wouldn’t be a surprise to see the stock rally as the result of a short squeeze the next time that the fallen dot-com darling has something good to say.

The article Baidu Feeds the Bad News Bears originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends Baidu and Google. The Motley Fool owns shares of Baidu and Google.

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