Baidu.com, Inc. (BIDU) Braces for Manic Monday

There’s more uncertainty than usual this time because we don’t know the kind of damage that Qihoo 360 Technology Co Ltd (NYSE:QIHU)‘s search engine has done to Baidu. Qihoo 360 was a surprising player. The company is best known for its Web browser and online security software, but it turned heads when it replaced Google with a homegrown solution for search this past summer. The novel engine and its initial lack of monetization attracted users. Within a few months, third-party trackers had Qihoo 360’s engine claiming 10% to 15% of China’s search market.

Clearly, there’s room for more than one search provider. Google rarely enjoys the kind of market dominance that Baidu has in China, and it’s a money machine. However, until Qihoo 360’s search initiatives settle — and investors get a clear snapshot of where Baidu’s market position and earnings potential lie — question marks will remain.

Some answers may come on Monday. It will be the first full quarter that Qihoo 360’s search engine was competing with Baidu, and the market will be able to weigh Baidu’s performance against its October guidance to see if the fundamentals are improving or deteriorating.

The latest economic news out of China has been encouraging. Threats that the world’s most populous nation will crack down on Internet usage also appear to be overblown. Bloomberg reported this weekend that Baidu CEO Robin Li, China’s third wealthiest person, has been named to the country’s top political advisory body. There’s validation in that appointment.

Investors are now hoping that even more validation will arrive on Monday night.

The article Baidu Braces for Manic Monday 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, Google, and SINA and owns shares of Baidu and Google.

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