Baidu Stock Declines Amid Market Pressure and Analyst Ratings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy BIDU?
Source: Benzinga
- Stock Decline: Baidu's shares fell 3.42% to $139.90 in premarket trading on Wednesday, following a 2.50% drop during Tuesday's regular session, indicating growing concerns in the tech sector.
- Market Pressure: The broader tech sector in Hong Kong faced significant pressure, with the Hang Seng Tech Index declining sharply, partly due to speculation about potential value-added tax adjustments targeting internet-related sectors, reflecting cautious investor sentiment.
- Earnings Forecast: Investors are looking forward to the earnings report scheduled for February 26, with an EPS estimate of $1.12, down from $2.63 YoY, while revenue is expected to reach $4.68 billion, a slight increase from $4.67 billion YoY, indicating marginal improvement in revenue growth.
- Analyst Ratings: Baidu's stock carries a
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Analyst Views on BIDU
Wall Street analysts forecast BIDU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BIDU is 160.67 USD with a low forecast of 100.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 138.960
Low
100.00
Averages
160.67
High
215.00
Current: 138.960
Low
100.00
Averages
160.67
High
215.00
About BIDU
Baidu Inc is a Chinese language Internet search provider. The Company operates its businesses through two segments, Baidu Core segment and iQIYI segment. Baidu Core segment mainly provides search-based, feed-based, and other online marketing services, as well as products and services from the Company’s new artificial intelligence (AI) initiatives, such as display advertisement and based on performance criteria other than cost-per-click, cloud services, smart devices and services, non-marketing consumer-facing services such as membership, and intelligent driving. iQIYI segment produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content, in a variety of formats, including a variety of products and services encompassing online video, online games, online literature, comics and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- First Dividend Policy: The board has approved a dividend policy for ordinary shares for the first time, with the first dividend payment expected in 2026, indicating a commitment to shareholder returns.
- Cash Flow Pressure: Despite holding $41.64 billion in cash and equivalents as of September 30, 2025, Baidu reported a concerning $302 million outflow in free cash flow, primarily due to heavy investments in AI, highlighting financial strain.
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- Dividend Policy Adopted: The company also approved a dividend policy for its ordinary shares, which may include regular and/or special distributions, reflecting a commitment to shareholder returns and attracting investor interest.
- Strong Market Performance: With a current market cap of $49 billion, Baidu's Q3 results exceeded market estimates, indicating robust growth in a competitive landscape.
- Positive Future Outlook: The company is expected to release its Q4 earnings on February 26, with the market generally optimistic about its future performance, particularly in the areas of AI and autonomous driving innovations.
See More
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- Share Buyback Program: The company's board approved a stock repurchase program of up to $5 billion, set to run through December 2026, aimed at enhancing shareholder value by reducing the number of shares outstanding, thereby increasing earnings per share.
- Positive Market Reaction: Following the announcement of the dividend and buyback plan, Baidu's shares jumped nearly 5% in after-hours trading, indicating a positive market response to the company's new strategy, despite the overall bearish sentiment.
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