Shares of other technology bellwethers marked narrow gains on Wednesday, with Microsoft Corp MSFT.O, Yahoo Inc YHOO.O, and Cisco Systems CSCO.O, Oracle Corp ORCL.O and Adobe Systems ADBE.O each rising by less than one percent. He said that checks by the firm suggested that Google.cn has already removed censoring filters for several keywords, increasing the possibility that the site “will be shut down soon, at least for a period time.” “China is the world’s largest Internet market with roughly 298 million users, with only 22 percent of the population penetrated.” “If Google were to exit China, we believe this represents a significant lost growth opportunity in the long term,” UBS analyst Brian Pitz said in a research note. Shares of Baidu jumped 12 percent to $432 in early trading, while Google shares slipped 2 percent to $579. Such concerns pushed investors toward Chinese search engine Baidu Inc BIDU.O, which leads Google in China's search market with more than 60 percent share. “The obvious concern is that China’s growth has been solid and its market potential is enormous.” “For investors this is clearly a negative,” Broadpoint AmTech analyst Benjamin Schachter said in a research note.
The bigger concern is what a withdrawal would mean for Google’s future prospects, given the size of China’s market and the potential for advertising sales there.
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