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Baidu (BIDU): the bull case

1:37 am ET, 30 Apr 2018

Baidu (NASDAQ: BIDU) is up over 5% in today's trading.  The stock has recovered from recent lows, which occurred because of tariff concerns spurred by recent political rhetoric between the US and China. What is the BIDU stock forecast?   

Baidu, the largest Internet search engine in China, has transformed from a mobile-centric to an AI-focused (artificial intelligence) company.

The primary competition that Baidu faces is from Alibaba and Tencent. We expect the margins to be thin not only because of aggressive R&D spend in the AI space, but also content spend. 

Baidu’s reputation and revenues from search were tarnished in the Wei Zexi incident (2016).  However, Chinese authorities put new regulations for online advertising in place, which clearly defined paid search results as advertising.  In 2016, Baidu’s active marketing customers decreased by 6% and its search revenue declined by 0.5%. 

However, its advertising revenue recovered in 2017, when online marketing revenue grew 13% year over year.

Baidu’s online video platform IQiyi has been a key growth driver in the past three years. Revenue increased 55% last year, but this division generated a significant operating loss. Baidu filed for an IPO for iQiyi, raising $1.5 billion. 

Baidu has a potential to achieve a breakthrough in AI-based apps or services, including autonomous driving.  Baidu views itself as a tech company and has been actively investing in AI for many years.

Over the last year, BIDU returned +34.17%. This return is higher than Internet Information Providers sector (6.59%), Technology industry (8.05%), and S&P 500 (11.64%) returns.


Per Finstead Research, Baidu's average analyst price target is $266.10 (visit Finstead and type "BIDU price target").

To check the latest news and stock analysis on Baidu, visit Finstead and type "BIDU news" or "BIDU buy or sell".  

Baidu, Inc. (BIDU) Stock Guide

Updated at: 10:30 am ET, 13 Nov 2020

Before we start: if you're looking for BIDU stock price, you can quickly find it out by visiting Finny and typing "BIDU quote". If you're looking for a quick scoop on BIDU stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BIDU". You'll get all this info in one place. Or you can just type "BIDU news" to get the latest stock news.

Looking to buy or sell Baidu, Inc. (BIDU)? Interested in getting the full scoop on BIDU, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BIDU stock guide, we'll address key questions about BIDU, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BIDU earnings?
2. When is BIDU earnings date?
3. What is BIDU stock forecast (i.e., prediction)?
4. BIDU buy or sell? What is BIDU Finny Score?
5. What are the reasons to buy BIDU? Why should I buy BIDU stock?
6. What are the reasons to sell BIDU? Why should I sell BIDU stock?
7. What are BIDU key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BIDU earnings?

BIDU trailing 12-month earnings per share (EPS) is $12.83.

2. When is BIDU earnings date?

BIDU earnings date is November 16, 2020.

Analyst Predictions

3. What is BIDU stock forecast (i.e., prediction)?

Based on BIDU analyst price targets, BIDU stock forecast is $151.78 (for a year from now). That means the average analyst price target for BIDU stock is $151.78. The prediction is based on 33 analyst estimates.

The low price target for BIDU is $100.62, while the high price target is $183.12.

BIDU analyst rating is Buy.

Analysis

4. BIDU buy or sell? What is BIDU Finny Score?

#{finnyScore:50}Our quantitative analysis shows 3 reasons to buy and 3 reasons to sell BIDU, resulting in Finny Score of 50.

5. What are the reasons to buy BIDU? Why should I buy BIDU stock?

Here are the reasons to buy BIDU stock:

6. What are the reasons to sell BIDU? Why should I sell BIDU stock?

Let's look at the reasons to sell BIDU stock (i.e., the bear case):

  • BIDU stock price ($142.47) is close to the 52-week high ($145.51). Perhaps now is a good time to sell? See BIDU price chart.
  • BIDU quarterly revenue growth was -1.10%, lower than the industry and sector average revenue growth (1.28% and 0.53%, respectively). See BIDU revenue growth chart.
  • BIDU PEG ratio (P/E adjusted for growth) is 130.57, which is high compared to its industry peers’ PEG ratios. See BIDU PEG chart.

Key Stats

7. What are BIDU key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BIDU:

Metrics BIDU
Price $140.45
Average Price Target / Upside $151.78 / 8.07%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Internet Content & Information
Sector Technology
Number of Employees 39,343
Market Cap $49.48B
Forward P/E Ratio 15.35
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth -1.10%
Profit Margin 3.40%

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