Tian Hou believes Baidu's growth is tied to China's
GDP growth, which should be solid this quarter and
next year. Believes the Phoenix Nest transition dip
in revenue is a one time thing. Expectations of over
60% year-over-year growth misplaced. Expects
Baidu to maintain dominance in the near term.
Also believes Baidu will be able to have low expenses
in the General and Administrative categories, but not
in R&D (being a tech company) and marketing (since
their customers are largely SMEs, they need a large
sales force to have a reasonable sales:customer ratio).