Baidu Inc. (BIDU) Has Plunged To A New Low After Q2 Report
Analysts from Pacific Crest and Brean Capital downgraded Baidu Inc. from Buy to Hold.
The consensus price target based on 10 analysts covering the stock is now $240.3. Earnings per share at Baidu came in at $1.81, above consensus $1.71.
Bloomberg’s Tim Culpan reports that Baidu CEO Robin Li plans to use the company’s $12 billion in cash and cash equivalents to get Chinese consumers to purchase movie tickets and other local services online.
Credit Agricole has cut Baidu.com (NASDAQ:BIDU) stock to Underperform in a research note revealed to clients and investors on Tuesday morning. Furthermore, they pointed out several positive factors for the company, as they believe that it has an edge over its competitors due to its dominance in traffic gateway, along with aggressive promotions.
The disappointing forecast for the third quarter which has punished Baidu.com, Inc. Baidu is closer to 52-week lows after this earnings report. Munster’s overall success rate recommending stocks is 68% with a +26.4% average return per recommendation when measured over a one-year horizon and no benchmark. Expectations point towards EPS of $1.84 and revenue of $2.67 billion, in line with $2.64 to $2.7 billion guided by the company. Baidu’s ADSs trade on the NASDAQ Global Select Market under the symbol “BIDU”.
Baidu has previously signalled its intention to give iQIYI its own share listing following an IPO. Baidu Inc (ADR) (NASDAQ:BIDU)’s showed weekly performance of -0.97%.
There are also a number of small players which could provide significant hurdles for the company. Baidu serves three types of online participants, which include users, customers and Baidu Union Members.
The Chinese Internet giant, also referred to as China’s Google, which has a stake in Uber Technologies, has been under scrutiny by investors, as the apps-driven mobile Internet threatens the role of traditional search engines like Baidu, according to the Financial Times report. It supplies Chinese-language Internet search services to empower users to seek out important information online, including Web pages, news, images, documents and multimedia files, through links.
Speaking on a conference call after the results were released, Li said Baidu had integrated its online maps with Uber’s ride-sharing services.
The company, however, has had to spend more to further grow its business and more effectively compete against its main rivals Alibaba Group and Tencent Holdings, which have made bigger bets in mainland China and overseas.