Baidu (BIDU) AI Stock Analysis

• Market Cap: $31.56B
• Dividend Yield: N/A
• Average Volume (3M): 4.42M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.03
• Revenue Growth: -1.32%
• EPS Growth: 42.56%
• Country: US
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 1.90
• Shares Outstanding: 278,228,360
• 10 Day Avg. Volume: 4,573,852
• 30 Day Avg. Volume: 4,420,828
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 0.82
• 1Y Price Target: $105.73
• Price Target Upside: 14.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: $101.00 ▲(9.21% Upside)

Baidu's overall stock score reflects strong financial recovery and strategic focus on AI and cloud technologies, driving long-term growth. While technical indicators and valuation are favorable, challenges in cash flow and declining online marketing revenue present risks.

Positive Factors

AI Cloud Growth

Non-advertising revenue continues to gain traction, now accounting for ~40% of Baidu Core, driven by strong AI Cloud growth (+34% year-on-year in the first half of the year) and a deliberate pivot toward subscription-based revenue for improved stability.

Autonomous Driving

Apollo Go adds further depth, with fully driverless rides up 148% year-on-year and global expansion gaining pace through partnerships with Uber and Lyft.

Financial Stability

Downside appears limited, supported by ~$63 net cash per share, a ~5% annual share buyback, and ongoing strength in non-ad revenue.

Negative Factors

Advertising Revenue Decline

Baidu's core ad business faces growth headwinds, with ad revenue down 15%.

Operating Profit Decline

The decline in the higher-margin ad business has led to a decrease in Baidu Core's adjusted operating profit both quarter-on-quarter and year-on-year.

Revenue and Profit Outlook

The outlook for revenue and profit has been cut for the second half of 2025 and for 2026-2027.

Baidu Business Overview & Revenue Model

Company Description

Baidu, Inc. (BIDU) is a leading Chinese multinational technology company specializing in Internet-related services and products, artificial intelligence (AI), and autonomous driving technology. Founded in 2000 and headquartered in Beijing, Baidu operates the largest search engine in China, providing users with a comprehensive suite of online services including search, cloud storage, and digital advertising. The company is also heavily invested in AI initiatives, developing smart devices and applications that leverage machine learning and natural language processing.

How the Company Makes Money

Baidu generates revenue primarily through its online marketing services, which account for a significant portion of its income. The company operates a pay-per-click advertising model, allowing businesses to promote their products and services via sponsored listings on its search engine and other platforms. In addition to online marketing, Baidu has expanded its revenue streams to include cloud services, which provide businesses with data storage and analytics solutions. The company is also exploring monetization opportunities in its autonomous driving segment through partnerships with automotive manufacturers and technology firms. Significant partnerships, such as those with various industries for AI applications and collaborations with other companies in cloud computing, further bolster its revenue generation capabilities.

Baidu Financial Statement Overview

Summary

Baidu demonstrates strong financial recovery with robust revenue growth and improved margins. The balance sheet is solid with manageable leverage and a strong equity base. However, cash flow generation has decreased, indicating reliance on operating performance for cash generation.

Income Statement

Baidu's income statement shows robust performance with a strong TTM gross profit margin of 49.05% and a net profit margin of 19.41%. The company has demonstrated a healthy revenue growth trajectory, with a notable recovery from previous losses, as seen in the EBIT margin turning positive. This indicates improved operational efficiency. However, the gross profit margin slightly decreased compared to the previous year, which might suggest rising costs or competitive pricing pressure.

Balance Sheet

The balance sheet reflects a solid financial position, with a debt-to-equity ratio of 0.38, indicating moderate leverage. The equity ratio stands at 59.42%, showcasing stability and a strong equity base. Although there is a slight increase in total debt, the company's equity growth keeps the leverage at manageable levels. Return on equity improved significantly to 9.65%, aligning with the company's profitability recovery.

Cash Flow

Baidu's cash flow statement reveals some challenges, with a lower free cash flow generation compared to previous periods, primarily due to reduced operating cash flow. The operating cash flow to net income ratio of 0.35 suggests efficient conversion of profits into cash but indicates a decrease from prior periods. The free cash flow to net income ratio of 0.06 highlights a reliance on operating performance for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.06B	133.13B	134.60B	123.67B	124.49B	107.07B
Gross Profit	65.77B	67.02B	69.57B	59.74B	60.18B	51.92B
EBITDA	34.11B	35.95B	36.53B	14.51B	14.10B	14.34B
Net Income	26.03B	23.76B	20.32B	7.56B	7.59B	22.47B
Balance Sheet
Total Assets	453.98B	427.78B	406.76B	390.97B	380.03B	332.71B
Cash, Cash Equivalents and Short-Term Investments	141.77B	127.44B	193.90B	174.00B	180.09B	162.18B
Total Debt	102.05B	79.32B	84.59B	91.35B	91.51B	82.59B
Total Liabilities	163.91B	144.17B	144.15B	153.17B	156.08B	140.87B
Stockholders Equity	269.75B	263.62B	243.63B	223.48B	211.46B	182.70B
Cash Flow
Free Cash Flow	1.66B	13.10B	25.32B	17.78B	8.88B	18.87B
Operating Cash Flow	9.01B	21.23B	36.62B	26.17B	20.12B	24.20B
Investing Cash Flow	-6.64B	-8.55B	-50.40B	-3.94B	-31.44B	-27.55B
Financing Cash Flow	4.35B	-13.76B	-14.16B	-6.39B	23.40B	5.67B

Baidu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIDU, the sentiment is Positive. The current price of 92.48 is above the 20-day moving average (MA) of 88.52, above the 50-day MA of 88.05, and above the 200-day MA of 87.87, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIDU.

Baidu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
META	87 Outperform	$1.89T	27.28	40.65%	0.27%	19.38%	40.62%
GOOGL	84 Outperform	$2.51T	22.21	34.83%	0.39%	13.19%	34.51%
GOOG	82 Outperform	$2.51T	22.28	34.83%	0.39%	13.19%	34.51%
TME	79 Outperform	$36.62B	27.84	14.07%	0.70%	10.66%	84.89%
ATHM	77 Outperform	$3.61B	17.11	6.05%	5.91%	-7.06%	-20.71%
BIDU	75 Outperform	$31.56B	8.49	10.33%	―	-1.32%	42.56%
Sector *	60 Neutral	$43.56B	4.52	-13.01%	4.07%	1.87%	-43.08%