Baidu (BIDU) AI Stock Analysis

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Baidu

(NASDAQ:BIDU)

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Neutral 64 (OpenAI - 4o)

Rating:64Neutral

Price Target:

$124.00

▼(-4.66% Downside)

Baidu's overall stock score reflects a mixed outlook. Strong profitability and growth in AI segments are offset by challenges in revenue growth, operational efficiency, and technical indicators suggesting bearish momentum. The high P/E ratio further indicates valuation concerns.

Positive Factors

Strong AI Native Marketing Services Growth

The rapid growth in AI marketing services highlights Baidu's innovation in digital advertising, supporting long-term profitability and market differentiation.

AI Cloud Revenue Growth

The sustained growth in AI Cloud revenue indicates strong demand for Baidu's AI products, enhancing its market position and long-term revenue potential.

Apollo Go Expansion

The expansion of Apollo Go into new markets demonstrates Baidu's leadership in autonomous driving, potentially increasing future revenue streams.

Negative Factors

Overall Revenue Decline

The decline in overall revenue suggests challenges in core business areas, potentially affecting Baidu's ability to sustain growth without diversification.

Baidu Core Online Marketing Revenue Decline

The significant drop in online marketing revenue indicates competitive pressures and market saturation, which could hinder future earnings growth.

Impairment of Long-Lived Assets

Asset impairments reflect potential missteps in investment strategies, impacting financial health and necessitating strategic reassessment.

Baidu (BIDU) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$42.99B

Dividend YieldN/A

Average Volume (3M)3.38M

Price to Earnings (P/E)40.9

Beta (1Y)1.10

Revenue Growth-3.49%

EPS Growth-60.83%

CountryUS

Employees35,900

SectorCommunication Services

Sector Strength97

IndustryInternet Content & Information

Share Statistics

EPS (TTM)1.57

Shares Outstanding278,228,360

10 Day Avg. Volume2,223,797

30 Day Avg. Volume3,378,600

Financial Highlights & Ratios

PEG Ratio0.47

Price to Book (P/B)0.81

Price to Sales (P/S)1.61

P/FCF Ratio16.38

Enterprise Value/Market Cap1.02

Enterprise Value/Revenue0.34

Enterprise Value/Gross Profit0.75

Enterprise Value/Ebitda1.25

Forecast

1Y Price Target

$151.71

Price Target Upside16.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

EPS Forecast (FY)7.44

Revenue Forecast (FY)$18.29B

Baidu Business Overview & Revenue Model

Company DescriptionBaidu, Inc. provides online marketing and cloud services through an internet platform in the People's Republic of China. It operates in two segments, Baidu Core and iQIYI. The Baidu Core segment offers search-based, feed-based, and other online marketing services; cloud services; and products and other services from AI initiatives. This segment also operates Haokan, a user generated and professionally produced short videos platform. The iQIYI segment operates an online entertainment video platform that offers original, professionally produced, and partner-generated content. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes MoneyBaidu generates revenue primarily through its online marketing services, which allow businesses to advertise their products and services on its search engine and other platforms. This includes pay-per-click (PPC) advertising, where advertisers pay based on user interactions with their ads. Additionally, Baidu earns revenue from its cloud services, offering a range of solutions for businesses looking to leverage cloud technology. The company is also investing heavily in AI and autonomous driving, with initiatives like Baidu Apollo, which collaborates with various automotive manufacturers and tech companies to develop self-driving technologies. Partnerships with various industries enhance Baidu's revenue potential by expanding its reach and capabilities in emerging markets.

Baidu Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how revenue is distributed across different business units, highlighting which segments drive growth and profitability, and indicating areas of strategic focus or potential vulnerability.

Chart InsightsBaidu's 'Other' segment shows consistent growth, driven by AI and cloud innovations, with recent earnings highlighting a 34% increase in non-online marketing revenue. However, the 'Online Marketing Services' segment faces challenges, declining 15% year-over-year, reflecting broader revenue pressures. Despite these challenges, Baidu's strategic focus on AI and autonomous driving, including partnerships with Uber and Lyft, signals a pivot towards future growth areas. Investors should note the potential long-term value from AI investments, though near-term revenue and margin pressures persist.

Data provided by:

The Fly

Baidu Earnings Call Summary

Earnings Call Date:Nov 18, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 04, 2026

Earnings Call Sentiment Neutral

Baidu's earnings call highlighted significant growth in AI Cloud, Apollo Go, and AI native marketing services, driven by advancements in AI technology such as ERNIE 5.0. However, overall revenue declines, particularly in online marketing and iQIYI, coupled with substantial asset impairments, resulted in operating losses. While there are strong areas of growth, the financial challenges present a mixed outlook.

Q3-2025 Updates

Positive Updates

AI Cloud Revenue Growth

AI Cloud revenue reached RMB 6.2 billion, increasing 21% year-over-year, showcasing sustained growth momentum.

Apollo Go Expansion

Apollo Go delivered over 3 million fully driverless operational rides in Q3, representing 212% year-over-year growth, and expanded its global footprint to 22 cities.

Strong AI Native Marketing Services Growth

AI native marketing services revenue reached RMB 2.8 billion, representing a 262% year-over-year increase and accounting for 18% of Baidu Core's online marketing revenue.

AI Applications Revenue

AI Applications generated revenue of RMB 2.6 billion, highlighting the growth of AI-powered product offerings.

ERNIE 5.0 Development

Unveiled ERNIE 5.0, a native omni-model foundation model demonstrating world-class capabilities in omni-model understanding, creative writing, and instruction following.

Negative Updates

Overall Revenue Decline

Total revenues were RMB 31.2 billion, decreasing 7% year-over-year.

Baidu Core Online Marketing Revenue Decline

Baidu Core's online marketing revenue was RMB 15.3 billion, decreasing 18% year-over-year.

iQIYI Revenue Decline

Revenue from iQIYI was RMB 6.7 billion, decreasing 8% year-over-year.

Impairment of Long-Lived Assets

Impairment of long-lived assets was RMB 16.2 billion, impacting the overall financial results.

Operating Loss

Operating loss was RMB 15.1 billion with Baidu Core's operating loss at RMB 15.0 billion, primarily due to asset impairments.

Company Guidance

During Baidu's Third Quarter 2025 Earnings Conference Call, several key metrics were highlighted to showcase the company's growth and future prospects. In Q3, Baidu Core reported total revenue of RMB 24.7 billion, with AI Cloud revenue reaching RMB 6.2 billion, marking a 21% year-over-year increase. Apollo Go delivered over 3 million fully driverless operational rides, demonstrating a remarkable 212% year-over-year growth. The subscription-based revenue from AI accelerator infrastructure surged by 128% year-over-year, reflecting strong demand for AI products. Baidu's AI-native marketing services, including agents and digital humans, generated RMB 2.8 billion in revenue, representing a significant 262% year-over-year growth. The AI applications segment also contributed RMB 2.6 billion in revenue. Despite a reported operating loss of RMB 15.1 billion due to asset impairment, Baidu demonstrated a non-GAAP operating income of RMB 2.2 billion. The company remains committed to expanding its AI capabilities and global footprint, with Apollo Go now operating in 22 cities, including recent expansions into Switzerland and the Middle East.

Baidu Financial Statement Overview

Summary

Baidu's financial performance shows strong profitability with a stable balance sheet, but faces challenges in revenue growth and operational efficiency. The negative operating cash flow is a concern, although improvements in free cash flow are encouraging.

Income Statement

Positive

Baidu's income statement reflects a mixed performance. The TTM data shows a decline in revenue growth rate by 1.79%, indicating challenges in maintaining growth. However, the company maintains a strong net profit margin of 20.97% in the TTM, which is a positive indicator of profitability. The gross profit margin has slightly decreased over the years, but remains healthy. The EBIT margin has turned negative in the TTM, suggesting operational challenges. Overall, while profitability remains strong, the decline in revenue growth and EBIT margin are areas of concern.

Balance Sheet

Positive

Baidu's balance sheet is relatively strong with a debt-to-equity ratio of 0.33 in the TTM, showing a manageable level of leverage. The return on equity has improved to 10.43% in the TTM, indicating efficient use of equity to generate profits. The equity ratio remains stable, reflecting a solid capital structure. Overall, the balance sheet demonstrates financial stability with a good balance between debt and equity.

Cash Flow

Positive

The cash flow statement shows some concerns, with a negative operating cash flow in the TTM, indicating potential liquidity issues. However, the free cash flow growth rate has improved significantly by 43.76% in the TTM, suggesting better cash management. The free cash flow to net income ratio is strong at 38.17, indicating efficient conversion of income to cash. Despite the improvement in free cash flow, the negative operating cash flow is a significant risk factor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.46B	133.13B	134.60B	123.67B	124.49B	107.07B
Gross Profit	58.29B	67.02B	69.57B	59.74B	60.18B	51.92B
EBITDA	35.27B	46.07B	43.35B	27.75B	30.64B	44.37B
Net Income	9.00B	23.76B	20.32B	7.56B	10.23B	22.47B
Balance Sheet
Total Assets	444.07B	427.78B	406.76B	390.97B	380.03B	332.71B
Cash, Cash Equivalents and Short-Term Investments	124.81B	127.44B	193.90B	174.00B	180.09B	162.18B
Total Debt	97.24B	79.32B	84.59B	91.35B	91.51B	82.59B
Total Liabilities	156.47B	144.17B	144.15B	153.17B	156.08B	140.87B
Stockholders Equity	264.53B	263.62B	243.63B	223.48B	211.46B	182.70B
Cash Flow
Free Cash Flow	-15.70B	13.10B	25.32B	17.78B	8.88B	18.87B
Operating Cash Flow	-3.27B	21.23B	36.62B	26.17B	20.12B	24.20B
Investing Cash Flow	-12.39B	-8.55B	-50.40B	-3.94B	-31.44B	-27.55B
Financing Cash Flow	14.36B	-13.76B	-14.16B	-6.39B	23.40B	5.67B

Baidu Technical Analysis

Technical Analysis Sentiment

Positive

Last Price130.06

Price Trends

50DMA

124.38

Positive

100DMA

112.35

Positive

200DMA

100.32

Positive

Market Momentum

MACD

0.11

Negative

RSI

61.55

Neutral

STOCH

89.74

Negative

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 130.06 is above the 20-day moving average (MA) of 119.94, above the 50-day MA of 124.38, and above the 200-day MA of 100.32, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	85 Outperform	$3.88T	31.69	35.45%	0.26%	13.55%	34.26%
GOOG	82 Outperform	$3.88T	31.77	35.45%	0.26%	13.55%	34.26%
META	76 Outperform	$1.70T	29.75	32.64%	0.31%	21.27%	6.16%
TME	71 Outperform	$26.50B	19.03	14.47%	0.97%	13.86%	80.97%
ATHM	68 Neutral	$3.09B	14.65	5.87%	0.00%	-5.54%	-14.30%
BIDU	64 Neutral	$42.99B	40.86	3.02%	―	-3.49%	-60.83%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

BIDU

Baidu

130.06

40.85

45.79%

Baidu Corporate Events

Baidu Completes CNY4.4 Billion Senior Notes Offering

Sep 15, 2025

On September 15, 2025, Baidu announced the completion of a CNY4.4 billion offering of senior unsecured notes due 2029, which were sold in offshore transactions to non-U.S. persons. The proceeds will be used for general corporate purposes, including debt repayment and interest payments. The notes are expected to be listed on the Hong Kong Stock Exchange on September 16, 2025, potentially enhancing Baidu’s financial flexibility and market presence.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 20, 2025