Analyst: Google threat to stop search helps Baidu
From AP News | 2010-02-01 19:19:02
<div id="subtitle">Baidu shares up, analyst says Google threat to stop search will send more advertisers to Baidu</div><div><p>Shares of Baidu Inc. rose Monday after an analyst said advertisers will spend more of their budgets on the Chinese Web search provider following Google Inc.'s threat to shut down search operations in China.</p><p>Beijing-based Baidu's stock added $15.12, or 3.7 percent, to $426.83 in afternoon trading.</p><p>In January, Google said it discovered a computer attack that tried to steal its technology and accessed the e-mail accounts of human rights activists protesting Chinese policies. Google has threatened to shut down its China-based search engine unless the country eases its rules requiring the censorship of results deemed to be subversive or pornographic.</p><p>For its part, the Chinese government has said foreign companies must comply with its laws. Google and the Chinese government are still in talks over the matter.</p><p>Credit Suisse analyst Wallace Cheung wrote in a note to investors Monday that he expects Google and China to resolve the matter, but that the uncertainty means as much as a third of Google's Chinese search advertising revenue ultimately could go to Baidu instead.</p><p>"Baidu is the key beneficiary of the Google incident," Cheung wrote. The analyst upgraded the stock to "Neutral" from "Underperform."</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68266213&bid=informcom" /></div><div id="copyright"><div>
Copyright 2010 <a href="http://www.ap.org">AP News</a></div></div>
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