Emily Flippen

I'm so compelled by this opportunity.

Oh my gosh, Toby, you think the valuation multiples are going to come down?

I mean, okay, this business has a market cap of somewhere like $180 billion.

Nearly $60 billion of that is in cash.

So, it has an enterprise value to EBITDA of less than 10X while growing its bottom line earnings per share double digits.

I mean, even if the top line is only growing 9%, that's downright cheap.

That's too cheap to ignore.

Yeah, I think that's fair.

I never get the full color that I want from Chinese companies and can feel a little criminal about the fact that they don't even give reportable segments when it comes down to what sales come from Timu versus the Pendle Dwell marketplace.

We disagree, but still, I think the valuation is considerable for maybe more risk-tolerant investors.

Okay.

Toby's right.

You can't fight me.

Unfortunately, you can't play with the headline numbers here, which is, Toby is right.

The ad market in China right now, it's bad across the board.

Baidu in particular, its dominance in search especially, it's having the alphabet problem, which is, it's still there, but they're losing ground, they're losing market share, and revenue is falling.

and its core business is ad placements.

That's just been incredibly weak for this company.

But I do think we are starting to see some return on investment for these initiatives.

While that hasn't made up for that core business falling, I think we're starting to see what the scale could be if Baidu does eventually get there.