Baidu Might Get Boost From Google

BEIJING TheStreet -- With a spotlight shining firmly on the Chinese tech sector following Google's(GOOG) recent threat to leave the country, rival Baidu's(BIDU) fourth-quarter results tonight will be closely monitored for signs of future upside.

Although relatively unknown in the West, Baidu is the Chinese Google, providing search services to the world's most populous nation. The Beijing-based firm, which celebrates its tenth anniversary this year, holds about 64% of the country's search market share, well ahead of Google.cn, which holds approximately 31%.

Google recently said it is evaluating its future in China due to a network hack and an ongoing censorship regime, potentially proving a massive boost to Baidu.

Opinions are divided on whether Google will ultimately risk losing its foothold in the lucrative Chinese market, although Wall Street is already eyeing Baidu buying opportunities for U.S. investors.

Goldman Sachs, for example, reportedly raised its Baidu price target from $500 to $550, adding that there is a 70% chance that Google would leave the Chinese market.

There is a concern that Baidu may be fully valued, although the company's stock has enjoyed an uptick following Google's threats to leave the Chinese market.

Baidu, which also competes with Chinese firms Sina(SINA) and Sohu(SOHU), has also expanded into Japan, which could be used as a launch pad into other Asian markets.

During its recent third quarter , Baidu's profit jumped 42%, but the firm gave weak fourth-quarter guidance, citing the end of its 'Online Marketing Classic Edition' service.