Baidu (BIDU) AI Stock Analysis

• Market Cap: $54.83B
• Dividend Yield: N/A
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 50.3
• Beta (1Y): 1.05
• Revenue Growth: -2.70%
• EPS Growth: -56.75%
• Country: US
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.60
• Shares Outstanding: 278,228,360
• 10 Day Avg. Volume: 3,342,992
• 30 Day Avg. Volume: 3,097,875
• 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: 7.94
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: $168.73
• Price Target Upside: 7.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.13
• Revenue Forecast (FY): $19.39B

• Rating: 68 Neutral
• Price Target: $164.00 ▲(4.03% Upside)

Score is driven by solid but uneven financial performance (strong profitability and balance sheet, offset by negative operating cash flow and weakening growth). Technicals are bullish but stretched (overbought signals). Valuation is a notable drag due to a high P/E, while the earnings call adds a mixed but supportive AI-growth narrative alongside declining core ad revenue and impairment-driven losses.

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 Business Overview & Revenue Model

Company Description

Baidu, 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 Money

Baidu 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 Financial Statement Overview

Summary

Mixed fundamentals: strong net margin (20.97%) and a solid balance sheet with manageable leverage (D/E 0.33), but weakening growth (TTM revenue growth -1.79%), negative EBIT margin in the TTM, and negative operating cash flow create meaningful execution and liquidity risk despite improved free cash flow growth.

Income Statement

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

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

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 Price: 157.64
• 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 157.64 is above the 20-day moving average (MA) of 148.44, above the 50-day MA of 131.52, and above the 200-day MA of 108.09, indicating a bullish trend. The MACD of 8.06 indicates Negative momentum. The RSI at 65.23 is Neutral, neither overbought nor oversold. The STOCH value of 64.84 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
GOOGL	85 Outperform	$4.02T	32.87	35.45%	0.26%	13.55%	34.26%
GOOG	82 Outperform	$4.02T	32.91	35.45%	0.26%	13.55%	34.26%
META	73 Outperform	$1.69T	29.71	32.64%	0.32%	21.27%	6.16%
TME	71 Outperform	$24.22B	17.33	14.47%	1.02%	13.86%	80.97%
BIDU	68 Neutral	$54.83B	50.35	3.31%	―	-2.70%	-56.75%
ATHM	68 Neutral	$2.78B	13.33	5.87%	0.00%	-5.54%	-14.30%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Baidu Corporate Events

Baidu Considers Spin-off of Kunlunxin for Separate Listing

On December 7, 2025, Baidu, Inc. announced that it is assessing the potential spin-off and separate listing of its non-wholly owned subsidiary, Kunlunxin (Beijing) Technology Co., Ltd. This move, if pursued, will require regulatory approval and reflects Baidu’s strategic efforts to optimize its business structure. The proposed spin-off could impact the company’s market positioning and offer new opportunities for stakeholders, although there is no guarantee that it will proceed.

The most recent analyst rating on (BIDU) stock is a Buy with a $181.00 price target. To see the full list of analyst forecasts on Baidu stock, see the BIDU Stock Forecast page.