Yahoo! Inc. (YHOO), MercadoLibre Inc (MELI), Baidu.com, Inc. (ADR) (BIDU): Three Internet Stocks Worth Searching

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As the country’s major search engine, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) will benefit from China’s increasing internet use, mainly as advertisers shell more cash into paid searching (Baidu’s main source of revenue) and the demand for paid search marketing expands to small and medium-sized businesses. In relation to the mobile search market, although Baidu currently has a market share of 37.5%, the company is determined to increase that figure. It recently signed a deal with Apple Inc. (NASDAQ:AAPL) for expanding into iOS-powered devices, and is in the process of buying 91 Wireless, the country’s most popular third-party app store, in what will be the China’s biggest internet deal.

Bottom line

Investing in the internet industry is not for the faint of heart. Although solid growth prospects may look appealing to investors, diverse factors should be taken into account for those looking for long-term investments. Here, great returns come with great volatility. My recommendation? Stay out of Mercadolibre Inc (NASDAQ:MELI) unless you can handle the pressure. Yahoo! Inc. (NASDAQ:YHOO) and Baidu.com, Inc. (ADR) (NASDAQ:BIDU), on the other hand, look quite tempting.

Victor Selva has no position in any stocks mentioned. The Motley Fool recommends Baidu, Google, and MercadoLibre. The Motley Fool owns shares of Baidu, Google, and MercadoLibre.

The article 3 Internet Stocks Worth Searching originally appeared on Fool.com.

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