The full JP Morgan Internet Report

The sections relevant to Baidu are pp 99-117
and pp 267-271. Those sections have been authored
by Dick Wei.

Some minor criticism:

1. Number of searches per day expected to go
from 295 million to 357 million, a growth
of 20%. I consider that a heavy underestimate
- the US rate was about 25% in 2007, with far
fewer newer users. The Chinese government
is focused on spreading Internet use, and
their cooling measures won't affect it.

2. The number of Internet users is estimated to
be 195 million at the end of 2008. Another
major underestimate, since the number is
already at 182, and expected to grow to 244
million by end 2008 by the semi-government
Internet Society of China (ISC).

3. JPM's estimate for Baidu's Q4 07 results is
right at the low end of all analysts. ISC has
it right at the high end.

JP Morgan Internet report