11/18/2010 5:30 PM EST
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However, given some time to study the report, Sina investors saw that the short-term hit to the company was primarily due to stricter government rules and regulations affecting the fourth quarter. Yet, for 2011, the company was continuing to expect strong growth.
The whole portal space in China has been buoyant this year. China has seen media ad spending jump by 18%, thanks to big events like the recently closed Expo in Shanghai and the current Asian Games in Guangzhou. Big portals are having a big second half of 2010. NetEase.com (NTES - commentary - Trade Now) is up 27% in the last six months.
Of all the Chinese Internet stocks, Baidu (BIDU - commentary - Trade Now) is the best known to U.S. investors. It's now trading around $110, giving it a $37 billion market capitalization. Once Google (GOOG -commentary - Trade Now) exited the mainland earlier this year, Baidu stepped on the gas pedal, and it hasn't looked back. The stock is up 153% for the last 12 months and -- would you believe -- it is a 10-bagger from about two years ago, when it closed at a low of $10.91 on Dec. 5, 2008.