In a client note, Piper Jaffray analyst Gene Munster said
the questionable ads on Baidu "were typically selling drugs;
we do not believe these are fake drugs per se, but were being
sold through non-accredited medical Web sites that should not
score as high on sponsored results."Munster said that Baidu
acknowledged in an online statement that this is true and that
it has to put more focus toward sales practices, not just its technology.
He thinks the company will see a financial impact, but believes it
will be "less than one would expect." Around 1 - 3%. Munster
leaves his "buy" rating, and price target of $468 unchanged.
Heavily bullish.
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