NVIDIA Corporation (NVDA), Nuance Communications Inc. (NUAN), Baidu.com, Inc. (ADR) (BIDU): 2 Buys and One to Avoid From Tech Stocks Missing Giant Rally

1/31/2010 1/31/2011 1/31/2012 1/31/2013
Other Long Term Liabilities 111.95 347.71 455.8 589.32
millions USD

Nuance is also being hurt by the PC sector. In its last quarter, weak Windows software sales hurt revenue.

3)
Baidu.com, Inc. (ADR) (NASDAQ:BIDU)

Baidu is down 35% in the 1-year period. The company’s CEO said Baidu may make acquisitions for companies that make smartphones. This move is an attempt to diversify away from search. The move is disturbing for investors. It can be a red flag when a company looks beyond its core competency. Even though mobile growth is outpacing desktops, Baidu has a near-monopoly in China.

Last month, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) was dropped from Goldman Sach’s “Sustain China” list. Citigroup was also worried about weak mobile search results for Baidu.com, Inc. (ADR) (NASDAQ:BIDU). Citi estimated that clicks from mobile were just 1/10 that of PC levels.

Conclusion

NVIDIA Corporation (NASDAQ:NVDA) continues to be a value play for investors. The short-term uncertainties in the company’s strategy are a cause for concern, but NVIDIA has a solid Tegra-based solution. As mobile makers adapt the Tegra solution, NVIDIA will benefit. Nuance Communications Inc. (NASDAQ:NUAN) is showing signs of recovery on the market, and could recover if it looks for ways to strengthen its business in health care.

Baidu looks like a company that investors should avoid for now. The recent strategic shift, while necessary, is putting investors at risk. Even if the strategy were the right move, it is fraught with risk, not to mention lacking in detail. The uncertainty will continue to hurt Baidu shares.

The article 2 Buys and One to Avoid From Tech Stocks Missing Giant Rally originally appeared on Fool.com and is written by Chris Lau.

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