Better Buy: Baidu vs. MercadoLibre
I compared Baidu (NASDAQ: BIDU) to MercadoLibre (NASDAQ: MELI) last November. At the time, I declared MercadoLibre was the better investment because it was growing faster, faced fewer competitive threats, and benefited from pandemic-induced online shopping trends.
Baidu traded at much lower valuations than MercadoLibre, but it faced tough competitors in China as the pandemic battered its core advertising business. Yet Baidu's stock has rallied nearly 40% since I made that call, while MercadoLibre's stock has risen just over 20%.
Did I underestimate Baidu's resilience while overestimating MercadoLibre's ability to justify its valuations? Let's take a fresh look at both companies to decide.
Source Fool.com
