The Chinese tech industry has been growing rapidly despite increasing regulatory controls by the Chinese authorities. With continued technological innovations, two key players in this space— Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU)—are poised to deliver stable returns. But let’s find out which of these two stocks is a better buy now.Alibaba Group Holdings Limited (BABA) and Baidu, Inc. (BIDU) are two of the biggest Chinese tech giants. BABA is known as the ‘Amazon (NASDAQ:AMZN) of China’ and operates through four major segments—Cloud Computing, Digital Media, Innovation and Core Commerce. BIDU is a Chinese language Internet search provider that offers a Chinese language search platform on its website.
While many countries are still struggling to fully recover from the COVID-19 pandemic, China has recovered rapidly. Major Chinese tech giants are also making their presence felt in the global economy, but at the same time are facing increasing regulatory controls from Chinese authorities. However, since technological advancements are happening now on almost a regular basis, both BABA and BIDU should witness increasing demand for their products and services.
While BIDU has returned 114.4% over the past year, BABA has gained 13.9%. In terms of their past-month’s performance, BIDU is a clear winner with 3.8% returns versus BABA’s 2.4%. But which of these two stocks is a better pick now? Let's find out.