Time to short Baidu?
Am I the only one seeing a bubble in BIDU shares? It's ok that Google may pull out of China, but maybe they won't... and even if they do, there are more competitors for Baidu in there.
For the time being, all this controversy has resulted in Google becoming the number 1 search engine in China for the last couple of weeks (they had 36% market share previously). Good strategy.
Over the last 15 months shares have jumped 328%, and trades for 93 times historical earnings and 60 times projected 2010 earnings.
With BIDU shares seemingly priced for perfection, anything that goes wrong could be highly profitable.
Any thoughts on this?