Baidu.com, Inc. (ADR) (BIDU), Yahoo! Inc. (YHOO): Smart Players in the Dot-Com Sector

Additionally, the company has introduced a new approach to emailing which automatically sorts personal emails. In addition to sending and delivering messages, the new service helps its users to complete all kinds of tasks from planning meetings to registering for flights depending on the type of correspondence. The company also released a full-fledged mobile browser for iPad and Android smartphones. These ventures will expand Yandex NV (NASDAQ:YNDX)’s customer base and will increase the number of advertisement orders placed. This will eventually generate higher revenues and make Yandex NV (NASDAQ:YNDX) a more recognizable brand name.

Conclusion

China’s Internet space is booming as the country has the largest Internet user population at 564 million. This rising trend will tremendously benefit Baidu.com, Inc. (ADR) (NASDAQ:BIDU). The company’s revenues almost doubled and tripled in 2011 and 2012 respectively as compared to 2010. Constant innovation has been the driving force behind the increasing revenues. Its recent acquisitions will make Baidu the leader in the mobile Internet market and online video platform in China, so I would recommend buying the company’s stock based on its bright future.

The revenues of Yandex NV (NASDAQ:YNDX) also skyrocketed in 2011 and 2012 as compared to 2010. As of March 2013, 61.9% of its search traffic came from Russia. The joint venture with the Russian bank and the launch of a mobile browser is likely to increase profits for the company. Yandex NV (NASDAQ:YNDX) has a bright future ahead and I would make a buy recommendation for this company’s stock as well.

Yahoo!’s performance, on the other hand, is not very pleasing since the company is losing its market share and its revenues have been decreasing over the years. Its debt profile is also getting worse. Moreover, its acquisition of Tumblr is not going to provide synergistic benefits as the transaction is overpriced. Admovate may help the company in improving its position, but it will take some time. As a result, I would not recommend buying the company’s stock right now.

usman iftikhar has no position in any stocks mentioned. The Motley Fool recommends Baidu and Yandex. The Motley Fool owns shares of Baidu. usman is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Smart Players in the Dot-Com Sector originally appeared on Fool.com is written by usman iftikhar.

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