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Baidu (BIDU)
NASDAQ:BIDU
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Baidu
(NASDAQ:BIDU)71Outperform
Positive Factors
AI Adoption
Baidu continues to improve AI adoption throughout the core business, with 22% of search results pages containing AI content.
Cloud Revenue Growth
Cloud revenue growth accelerated to 26% YoY with Gen-AI already making up double-digit-% of revenues while making progress in AD.
Negative Factors
Search Engine Competitiveness
There are ongoing debates about the long-term competitiveness of Baidu's search engine, with pressure from integrating AI without current monetization amidst a subdued macro environment.
Baidu (BIDU) vs. S&P 500 (SPY)
Market Cap
$30.58B
Dividend YieldN/A
Average Volume (3M)6.11M
Price to Earnings (P/E)9.3
Beta (1Y)1.45
Revenue Growth-2.60%
EPS Growth19.69%
CountryUS
Employees39,800
SectorCommunication Services
Sector Strength85
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)9.35
Shares Outstanding285,054,930
10 Day Avg. Volume6,095,220
30 Day Avg. Volume6,111,885
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)N/A
Price to Sales (P/S)11.40
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$111.16Price Target Upside27.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Baidu Business Overview & Revenue Model
Company DescriptionBaidu, Inc. (BIDU) is a leading Chinese multinational technology company specializing in Internet-related services and products, artificial intelligence (AI), and autonomous driving. Founded in 2000 and headquartered in Beijing, China, Baidu operates primarily through its search engine, which is one of the largest in the world and dominant in China. The company is also heavily involved in AI development, providing cloud computing services, and developing self-driving technology through its Apollo project. Baidu has expanded its operations to include online marketing services, AI-powered devices, and intelligent transportation solutions.
How the Company Makes MoneyBaidu generates revenue primarily through online marketing services, which include pay-for-performance advertising and display marketing services. This is achieved by placing paid advertisements on its search results pages and network of third-party websites. Another significant revenue stream comes from AI cloud services, where Baidu leverages its AI expertise to offer cloud computing solutions to enterprises. Baidu also earns from its investments in autonomous driving technology and smart transportation, particularly through partnerships and collaborations with automotive and technology companies. Additionally, the company monetizes its AI-powered devices, such as smart speakers and other IoT products, which contribute to its diversified income portfolio.
Baidu Financial Statement Overview
Summary
Baidu's financials show strong profitability and operational cash flow recovery. The balance sheet is stable with manageable leverage, though high debt levels warrant caution. Revenue growth has been stagnant, but overall financial health remains robust due to solid cash flow generation.Income Statement
Baidu's income statement shows a strong recovery with a significant improvement in net income from a loss in 2019 to consistent profitability in recent years. Gross profit margins have remained robust, and there is a notable positive trend in EBIT and EBITDA margins. However, revenue growth has been relatively stagnant, with a slight decline from 2023 to 2024.75
Positive
Balance Sheet
Baidu's balance sheet reveals a solid equity base with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is manageable, reflecting prudent leverage levels. Return on equity has improved significantly, showing efficient utilization of shareholder funds. However, total debt remains relatively high, posing some risk.70
Positive
Cash Flow
The cash flow statement indicates strong operational cash flows, supporting liquidity and operational needs. Free cash flow has been positive, although it has shown a declining trend recently. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to profits. However, free cash flow growth has been negative, which may impact future investments.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 133.13B | 134.60B | 123.67B | 124.49B | 107.07B | Gross Profit |
| 67.02B | 69.57B | 59.74B | 60.18B | 51.92B | EBIT |
| 21.27B | 21.86B | -5.58B | -8.46B | -8.37B | EBITDA |
| 35.95B | 36.53B | 14.51B | 14.10B | 14.34B | Net Income Common Stockholders |
| 23.76B | 20.32B | 7.56B | 7.59B | 22.47B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 127.44B | 193.90B | 174.00B | 180.09B | 162.18B | Total Assets |
| 427.78B | 406.76B | 390.97B | 380.03B | 332.71B | Total Debt |
| 79.32B | 84.59B | 91.35B | 91.51B | 82.59B | Net Debt |
| 54.49B | 59.36B | 38.20B | 54.66B | 46.81B | Total Liabilities |
| 144.17B | 144.15B | 153.17B | 156.08B | 140.87B | Stockholders Equity |
| 263.62B | 243.63B | 223.48B | 211.46B | 182.70B |
| Cash Flow | Free Cash Flow | |||
| 13.10B | 25.32B | 17.78B | 8.88B | 18.87B | Operating Cash Flow |
| 21.23B | 36.62B | 26.17B | 20.12B | 24.20B | Investing Cash Flow |
| -8.55B | -50.40B | -3.94B | -31.44B | -27.55B | Financing Cash Flow |
| -13.76B | -14.16B | -6.39B | 23.40B | 5.67B |
Baidu Technical Analysis
Negative
87.15
Price Trends
87.08
Positive
88.58
Negative
90.33
Negative
Market Momentum
-0.31
Positive
47.56
Neutral
15.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIDU, the sentiment is Negative. The current price of 87.15 is below the 20-day moving average (MA) of 90.08, above the 50-day MA of 87.08, and below the 200-day MA of 90.33, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 15.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIDU.
Baidu Risk Analysis
Baidu disclosed 108 risk factors in its most recent earnings report. Baidu reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Baidu Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.69T | 28.01 | 34.14% | 0.30% | 21.94% | 61.97% | |
82 Outperform | $2.16T | 36.91 | 20.72% | ― | 10.99% | 91.61% | |
81 Outperform | $2.89T | 31.30 | 30.64% | 0.81% | 15.04% | 12.38% | |
76 Outperform | $3.54T | 37.51 | 144.03% | 0.53% | 2.61% | -2.14% | |
74 Outperform | $2.09T | 21.17 | 30.80% | 0.36% | 13.89% | 38.99% | |
71 Outperform | $30.58B | 9.32 | 9.01% | ― | -2.60% | 19.69% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% |
* Communication Services Sector Average
Performance Comparison
BIDU
Baidu
87.15
-12.23
-12.31%
AMZN
Amazon
203.80
30.29
17.46%
AAPL
Apple
235.93
67.61
40.17%
META
Meta Platforms
640.00
145.27
29.36%
GOOGL
Alphabet Class A
170.92
40.00
30.55%
MSFT
Microsoft
388.61
-10.43
-2.61%
Baidu Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -10.60% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment driven by strong growth in AI Cloud and ERNIE's performance, along with significant advancements in autonomous driving and AI-powered search. However, these achievements are partially offset by declines in online marketing and iQIYI revenues, as well as lower operating income due to one-time losses.Highlights
AI Cloud Revenue Growth
AI Cloud business revenue grew 26% year-over-year in Q4 2024, contributing to a full year revenue growth of 17%. GenAI-related revenue nearly tripled year-over-year in 2024.
ERNIE's Strong Performance
ERNIE handled approximately 1.65 billion API calls daily in December 2024, with external API calls growing 178% quarter-over-quarter.
Apollo Go Expansion
Apollo Go provided approximately 1.1 million rides in Q4 2024, marking a 36% year-over-year growth. It also achieved 100% fully driverless operations nationwide.
Search Transformation
AI-generated content appeared in 22% of search result pages, with improved user metrics and a 2% year-over-year increase in daily search queries per user in December 2024.
Baidu Wenku Growth
Wenku's subscription revenue grew 21% year-over-year, with nearly doubling of monthly active users for AI-enabled features quarter-over-quarter.
Lowlights
Online Marketing Revenue Decline
Baidu Core's online marketing revenue decreased 7% year-over-year in Q4 2024, accounting for 65% of Baidu Core's total revenues.
iQIYI Revenue Decline
Revenue from iQIYI decreased 14% year-over-year in Q4 2024 and 8% for the full year.
Operating Income Decline
Operating income was RMB3.9 billion in Q4 2024, compared to RMB5.4 billion for the same period last year, impacted by one-time losses including accrual of credit losses and inventory write-downs.
Company Guidance
During Baidu's fourth quarter and fiscal year 2024 earnings call, the company provided several key metrics and strategic insights. Baidu's core total revenue for Q4 increased slightly year-over-year to RMB27.7 billion. The AI Cloud business demonstrated robust momentum with a 26% revenue growth year-over-year, offsetting the softness in the online marketing business. ERNIE, Baidu's AI model, handled approximately 1.65 billion API calls daily in December, with external API calls growing 178% quarter-over-quarter. Baidu's autonomous ride-hailing service, Apollo Go, provided approximately 1.1 million rides in Q4, marking a 36% increase year-over-year, and achieved 100% fully driverless operations nationwide. Baidu's AI innovations, particularly in areas like the AI Cloud and autonomous driving, were highlighted as areas of strategic focus, with plans to further invest in these technologies to maintain leadership in the AI sector. The company also indicated a commitment to accelerating its buyback program, having repurchased over $1 billion since the beginning of 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.