RRJ5

SKY
EAP1
May 4, 2010

Reference:
Goldman, David(April 29,2010). ‘Baidu jumps $90 on profit from Google's China exit', republished by CNNMoney.com. Retrieved May 4,2010, from http://money.cnn.com/2010/04/29/technology/baidu/index.htm

Summary:
According to the ‘Baidu jumps $90 on profit from Google’s China exit’, Google company exited the search business in China to Baidu company’s stock rose $90. Goole’s stock has fallen more than 12%since January, because they decided to quit the search business in China; meanwhile, Baidu has risen up more than 80%. Goole was asked o leave China, so a lot of companies had to change their search engine to Baidu. In last three months, Baidu’s market share rose up 64% in China, but Goole went down 31% in China. Baidu showed their first-quarter net income rising up to 165%compared to last year. Baidu said they still had enough space to develop. Jennifer Li, who is Baidu’s CFO,said they would focus on developing technology and changing their business to better than before. Some analysts thought that the rate of the rise depended on Goole, which with that quit its search business in China. Danil Ruby, research director at Chitika Inc, disagreed with that. He thought Baidu would find some good way to increase its market share. This growth was not temporary.

Reaction:
Baidu is the largest search engine company in China. It has become so strong, because Google did not attach importance to him in many years ago. When Goole was attracted to Baidu, it had been the second largest search engine company in China. Goole is in the top 500 companies in global world. It tries to give people everything that people want to know. Some countries want to keep their countries safe, so they will tell Goole to keep information which they do not want to show to their nationals, such as China, India and England. Goole did not want to deprive peoples’ rights, For business that was a really bad way to do it, becase no governments favor this company for business in their own country. For peoples’ power that was a good way. People can know the truth or news from everwhere. Baidu coms from China. It follows the Chinese government rules, and the government wants to develop its national industry. Goole quit the Chinese business; that will help Baidu grow up quickly and monopolize easily in a short time. Unfortunately, in a long term in the future, it is bad fr market development. If Baidu wants to become a mighty company, it needs to do it without Chinese government protection, and go overseas do more search business in other languages. Now Baidu is a gigantic company in China. It needs to catch this chance, and collect enough capital, and use WTO rules correctly do some business outside.

Vocabulary:
Profit: the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)

Share: any of the equal portions into which the capital stock of a corporation is divided and ownership of which is evidences by a stock certificate.

Analysis: the abstract separation of a whole into its constituent parts in order to study the parts and their relations.

Benefit: financial assistance in time of need

Analyst: an expert who studies financial data (on credit or securities or sales or financial patterns ets.) and recommends appropriate business actions

Earning: earn on some commercial or business transaction; earn as salary or wages.

Revenue: the entire amount of income before any deductions are made

Monetization: establishing something (e.g. gold or silver) as the legal tender of a country

Bullish: expecting a rise in prices