The mobile search market has proved to be elusive in terms of generating revenue, despite it accounting for 15% of total Chinese search queries. Baidu may also be strengthening its position in the mobile market.
, for example, reported that
(AAPL - Get Report)
may integrate the Chinese tech giant into its iOS for search. That relationship may expand, as Apple's new iPad was just granted
regulatory approval in China
There's still significant opportunity to monetize mobile search in China, as well as surrounding countries, such as Korea. JP Morgan analyst Sungmin Chang notes that Baidu is gaining share in Korea. Chang explains that Internet growth in Korea has "seen unparalleled smartphone penetration growth since 2009." JP Morgan rates Baidu shares "overweight."
Noted investors such as
Tiger Global Management's
Steve Cohen, and JAT's John Thaler own large positions in Baidu. Baidu shares are up 31.7% year-to-date.
---View the rest of SAC Capital's portfolio.
Baidu is the dominant player in a country with a population over 1 billion and a burgeoning middle class that is increasingly using the Internet. Investors may want to take another look to China if they want to find the "next Google."
Shares of Baidu are up $2.35, or 1.56%, to $153.15 in Tuesday trading.
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Written by Chris Ciaccia in New York
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