Youku Tudou Inc (ADR) (YOKU), Baidu.com, Inc. (ADR) (BIDU): This Company Is a Chinese Youtube in the Making, Here’s Why

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The bottom line

The Chinese online video streaming market looks extremely promising. Particularly, mobile sites offering video services will experience amazing growth, as Chinese shift from TV to Internet in order to watch movies, and as the smartphone and Internet penetration rates increase in the next 3 years.

The down side is that such an attractive market also represents an open invitation to start ups, tech giants and anybody interested in getting a piece of this huge market in the making. Competition is already fierce.

If you want to add exposure to this particular market, I recommend considering buying Baidu.com, Inc. (ADR) (NASDAQ:BIDU) (probably the biggest video platform in terms of mobile users). Baidu has everything to succeed in this fierce market and it has strong mobile exposure. Youku Tudou Inc (ADR) (NYSE:YOKU) has a strong web presence but keep in mind that the firm is not yet consistently profitable. Renren Inc (NYSE:RENN), on the other hand, may have more attractive businesses than its video platform. For example, the Groupon-like Nuomi.com business posted 102% Year over Year revenue growth ($5.1 quarterly earnings) in the last quarter. 

Adrian Campos has no position in any stocks mentioned. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu.

The article This Company Is a Chinese Youtube in the Making: Here’s Why originally appeared on Fool.com and is written by Adrian Campos.

Adrian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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