Baidu (BIDU) AI Stock Analysis

• Market Cap: $41.42B
• Dividend Yield: N/A
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.09
• Revenue Growth: -1.32%
• EPS Growth: 42.56%
• Country: US
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.56
• Shares Outstanding: 278,228,360
• 10 Day Avg. Volume: 4,323,724
• 30 Day Avg. Volume: 4,187,816
• PEG Ratio: 0.47
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 16.38
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $127.33
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $123.00 ▲(5.00% Upside)

Baidu's overall stock score reflects strong profitability and a robust balance sheet, offset by challenges in revenue growth and cash flow. The technical analysis indicates potential bearish momentum, while the valuation suggests the stock may be undervalued. The earnings call presents a mixed outlook with significant growth in AI initiatives but also highlights financial challenges.

Positive Factors

AI Cloud Revenue Growth

The sustained growth in AI Cloud revenue highlights Baidu's successful expansion in enterprise AI solutions, which is crucial for long-term business diversification and resilience against traditional market fluctuations.

Apollo Go Expansion

The rapid expansion and growth of Apollo Go demonstrate Baidu's leadership in autonomous driving technology, positioning it well for future transportation trends and potential revenue streams.

AI Native Marketing Services Growth

The significant growth in AI native marketing services indicates strong demand and Baidu's ability to innovate in digital advertising, enhancing its competitive edge in the online marketing sector.

Negative Factors

Overall Revenue Decline

The decline in overall revenue suggests challenges in Baidu's traditional business segments, which could impact its ability to fund new initiatives and maintain market leadership.

Baidu Core Online Marketing Revenue Decline

A significant drop in online marketing revenue indicates competitive pressures and market saturation, which may affect Baidu's core revenue-generating capabilities and long-term growth prospects.

Impairment of Long-Lived Assets

Substantial asset impairments reflect potential missteps in investment or strategy, which could strain financial resources and hinder Baidu's ability to invest in future growth opportunities.

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 profitability with healthy margins and efficient cost management. However, the decline in revenue growth and cash flow challenges pose potential risks. The balance sheet remains robust with manageable leverage, providing a solid foundation for future growth.

Income Statement

Baidu's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 47.11%, indicating efficient cost management. However, the revenue growth rate has declined by 0.91% in the TTM, reflecting challenges in expanding sales. The net profit margin is healthy at 20.97%, suggesting solid profitability despite revenue contraction. EBIT and EBITDA margins are also robust, indicating good operational efficiency.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.33 in the TTM, showing prudent leverage management. The return on equity (ROE) is moderate at 10.43%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 61.05%, indicating a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals significant challenges. The TTM free cash flow has decreased substantially, leading to a negative free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating issues in converting income into cash. However, the free cash flow to net income ratio is exceptionally high, suggesting potential one-time cash flow impacts.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.85B	133.13B	134.60B	123.67B	124.49B	107.07B
Gross Profit	62.59B	67.02B	69.57B	59.74B	60.18B	51.92B
EBITDA	36.77B	35.95B	36.53B	30.70B	27.12B	32.87B
Net Income	27.86B	23.76B	20.32B	7.56B	10.23B	22.47B
Balance Sheet
Total Assets	450.57B	427.78B	406.76B	390.97B	380.03B	332.71B
Cash, Cash Equivalents and Short-Term Investments	123.87B	127.44B	193.90B	174.00B	180.09B	162.18B
Total Debt	91.84B	79.32B	84.59B	91.35B	91.51B	82.59B
Total Liabilities	152.66B	144.17B	144.15B	153.17B	156.08B	140.87B
Stockholders Equity	275.06B	263.62B	243.63B	223.48B	211.46B	182.70B
Cash Flow
Free Cash Flow	-10.92B	13.10B	25.32B	17.78B	8.88B	18.87B
Operating Cash Flow	-243.00M	21.23B	36.62B	26.17B	20.12B	24.20B
Investing Cash Flow	-29.35B	-8.55B	-50.40B	-3.94B	-31.44B	-27.55B
Financing Cash Flow	4.28B	-13.76B	-14.16B	-6.39B	23.40B	5.67B

Baidu Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 117.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIDU, the sentiment is Neutral. The current price of 117.14 is below the 20-day moving average (MA) of 123.48, below the 50-day MA of 126.49, and above the 200-day MA of 98.58, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 13.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BIDU.

Baidu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOG	86 Outperform	$3.34T	27.32	35.45%	0.29%	13.55%	34.26%
GOOGL	80 Outperform	$3.34T	27.27	35.45%	0.29%	13.55%	34.26%
META	71 Outperform	$1.54T	26.93	32.64%	0.35%	21.27%	6.16%
TME	71 Outperform	$26.87B	19.39	14.47%	0.96%	13.86%	80.97%
ATHM	68 Neutral	$3.09B	14.65	5.87%	7.22%	-5.54%	-14.30%
BIDU	66 Neutral	$41.42B	10.48	10.33%	―	-1.32%	42.56%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Baidu Corporate Events

Baidu Completes CNY4.4 Billion Senior Notes Offering

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.

Baidu Reports Strong Q2 2025 Growth Driven by AI Initiatives

On August 20, 2025, Baidu announced its unaudited financial results for the second quarter ending June 30, 2025. The company reported robust growth in its AI Cloud business, which helped offset pressures in its online marketing segment. Baidu’s AI initiatives led to a significant increase in non-online marketing revenue, surpassing RMB 10 billion for the first time with a 34% year-over-year growth. The company is focused on long-term value creation through AI investments, including the global expansion of its Apollo Go robotaxi service. Despite challenges, Baidu’s strategic priorities are expected to drive substantial long-term value.