Baidu Continues To Surge (BIDU)
Shares of Baidu Inc. (NASDAQ: BIDU) are trading near a new all time high today, as investors react to news that Google (NASDAQ: GOOG) is expected to close down Google.cn, its Chinese search engine, in the near future. Google.cn accounts for roughly 36% of China's search market compared to Bidu's (BIDU) 58% market share. If Google (GOOG) does indeed leave China, the primary beneficiary should be Baidu (BIDU).
In recent months, tensions between Google and Chinese authorities have been escalating over censorship issues. Since these problems surfaced, Baidu has been on an absolute tear, appreciating over 38% in just the last 3 months. During today's trading session, Baidu has gained 6.49% to $586.32. Options traders remain bearish, however, snapping up 1.20 put contracts for every call purchased.
