The market overestimation of Qihoo 360 launches the search engine this event

Absrtact: Riedel Research, an independent emerging markets study company, reported this week that the market overestimated the launch of Qihoo 360, which has limited impact on Baidu's search business. Riedel points out that Qihoo 360 is not currently introducing advertising. Although this

Riedel Research, a U.S. independent emerging markets study, reported this week that the market overestimated the launch of Qihoo 360, which has limited impact on Baidu's search business.

Riedel points out that Qihoo 360 is not currently introducing advertising. While this helps to attract users, it also means that Qihoo 360 cannot get advertising revenue. Baidu's share of the search market in China is close to 80%, based on revenue. Although it is expected that Qihoo 360 will get a double-digit share in China's search market, it is mainly about search traffic, not revenue.

The report said: "Although the market generally believe that the current operating data means future revenue, but this is not entirely accurate." A recent case is Weibo. Riedel that if Qihoo 360 starts a price war, it will be worrying. Although the future advertising price of Qihoo 360 may be far lower than Baidu, but this is not necessarily the advantage of Qihoo 360.

According to previous valuations, Riedel's target for Baidu is $250 trillion.