Four Things Baidu.com, Inc. (ADR) (BIDU) Investors Should Be Happy About

4. Qi-Who?
It’s no big secret that one of the big reasons Baidu.com, Inc. (ADR) (NASDAQ:BIDU)’s stock has endured a difficult couple of years is because of the competition from scrappy up-start Qihoo 360 Technology Co Ltd (NYSE:QIHU). This company, which used to focus primarily on Internet security products, has been stealing search market share in China.

But although Qihoo likely still has a bright future, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has demonstrated its huge advantage when it comes to the ability to invest in the future. The purchase of 91 Wireless, and its current spending to promote and develop its products, highlights this.

But nowhere is this advantage more obvious than in the amount of cash Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has on hand. As of the end of the second quarter, Baidu has $5.55 billion in cash — whereas Qihoo has just one-twentieth that amount, or $300 million.

Fool contributor Brian Stoffel owns shares of Google and Baidu. The Motley Fool recommends Baidu and Google. The Motley Fool owns shares of Baidu and Google.

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