Forget Sogou, Baidu Is a Better Chinese Tech Stock

Sogou (NYSE: SOGO), which owns China's second-largest search engine and its top mobile keyboard app, recently turned heads with its expanding user base and stabilizing profits. Its revenue and adjusted earnings rose 1% and 44%, respectively, last quarter, as daily active users on its Mobile Keyboard app grew 9% to 464 million.

Sogou also expects its first-quarter revenue, which bears the full impact of the COVID-19 outbreak in China, to rise 3% annually at the midpoint. That was much rosier than Baidu's (NASDAQ: BIDU) forecast for a 9% decline in the first quarter.

Investors might be wondering if Sogou is a better Chinese tech stock than Baidu, which dominates China's search market but is struggling to keep pace with rivals like Tencent (OTC: TCEHY), ByteDance, and Alibaba (NYSE: BABA), which runs its e-commerce marketplaces as advertising platforms. Sogou is certainly getting its act together, but I still think Baidu remains a better long-term investment, for five simple reasons.

Source Fool.com