From Nasdaq:

Baidu and Alibaba were once considered safe investments in China. However, Baidu’s stock dropped 60% and Alibaba’s stock sank 68% over the past three years. Baidu is trying to diversify beyond online ads, while Alibaba faces regulatory challenges after China’s antitrust crackdown in 2021.

Baidu still controls 60% of China’s search market, but faces tough competition. It’s expanding its services and expects revenue and earnings growth in 2024. Alibaba, on the other hand, struggled in fiscal 2023 but anticipates growth in 2024, thanks to its overseas e-commerce and logistics businesses.

Both companies face regulatory challenges in the U.S. and China, which impacts their stock valuations. Despite the uncertainties, Baidu’s stable growth rates and business diversification make it a better buy than Alibaba, which needs to stabilize its core businesses before being considered undervalued. Consider investing in Baidu cautiously.

Before investing in Baidu, consider other growth plays in the U.S. market with fewer regulatory issues. While Baidu shows potential, it’s worth exploring other opportunities for better returns. The Motley Fool Stock Advisor team has identified 10 stocks with potential for high returns, excluding Baidu. Don’t miss out on potential monster returns from these stocks. Make an informed investment decision.



Read more at Nasdaq: Better Growth Stock: Baidu vs. Alibaba