Party Like It's 1999: Shares of Baidu Trading Higher Than Shares of Google

Well today is the day that shares of Baidu (BIDU) are trading higher than Google (GOOG). After this whole story with China broke and Google's pain became Baidu's gain, I didn't think it would take this this long until shares of Baidu were trading higher than Google... Well as of pre-market today when Google announced they are almost 100% certain they will be pulling out of China, the shares are down about 2% to 569, and Baidu up about 4% to 572. I understand that Baidu is a growth story and they are expected to grow 2010 earnings 50% over 2009, but I am not going to shake a stick at the 18% Google is expected to grow; not to mention that is well baked into the share price based on current levels of PE ratios. I am not going to say short one and buy the other, but it feels a bit like 1999 and if I had to choose one to own here, I would most definitely buy Google. However I will say that both can be owned as a pair trade. I have traded both Baidu and Google multiple times, but currently do not own Baidu in my investment portfolio. Sphere: Related Content