E-commerce may reduce dependence on search engines

We have a Conviction Buy rating on Amazon and a Buy rating on Gmarket, which we believe are garnering sufficient traffic as destination websites to reduce reliance on search engines and so improve their profitability and control of their destiny. We have Neutral ratings on Baidu and NHN,

partly due to concern that e-commerce spending in there home markets may not flow to search engines as much as we previously expected. We have a Buy rating on Google, which we view as in expensive and as potentially enjoying revenue upside from developed markets ex-US/UK.

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