BIDU Flies to the Cloud

It’s getting hotter in cloud services. Google (NASDAQ:GOOG) is rumored to be close to launching Drive, a cloud storage service competing with existing services such as Dropbox and Carbonite. Playing catch-up is Chinese Internet major Baidu (NASDAQ:BIDU) who according to reports is testing NetDisk, a similar product offering free storage of 15GB. Baidu will face competition from existing Chinese services Huawei, Shanda Interactive (NASDAQ:SNDA), and some start-ups.

Baidu NetDisk, according to reports, is under invitation-only testing and offers mostly similar facilities such as upload (1GB max) of videos, images etc, file-sharing, and PC and Android-based clients. According to initial tests the service is very fast and the huge storage of 15GB compares very favorably with the 2GB provided by Dropbox, which is currently blocked in China. No pricing plans are presently displayed on Baidu’s NetDisk page.

Here’s how BIDU is trading on the news:

Baidu, Inc. (NASDAQ:BIDU): BIDU shares recently traded at $148.42, up $4.1, or 2.84%. They have traded in a 52-week range of $100.95 to $165.96. Volume today was 3,889,206 shares versus a 3-month average volume of 5,890,130 shares. The company’s trailing P/E is 49.48, while trailing earnings are $3.01 per share.

To contact the reporter on this story: Sundeep Goyal at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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