Better Buy: Baidu vs. Alibaba
Last September, I declared Alibaba (NYSE: BABA) was a better buy than Baidu (NASDAQ: BIDU). I claimed that the strength of Alibaba's core commerce business, the narrowing losses at its cloud division, and the upcoming initial public offering (IPO) of its fintech affiliate Ant Group made it the stronger overall company.
Meanwhile, Baidu's ad revenue continued to decline, its streaming-video unit iQiyi lost its momentum, and its expansion into next-gen markets like artificial intelligence (AI) and driverless cars wasn't generating much revenue yet.
But since I wrote that article, Alibaba's stock price has tumbled more than 10% as Baidu's stock price surged over 70%. Let's see why my call missed the mark and whether or not Baidu can maintain its recent momentum.
Source Fool.com
