Baidu, Inc. Class A (9888) AI Stock Analysis

• Market Cap: HK$335.25B
• Dividend Yield: N/A
• Average Volume (3M): 26.85M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.35
• Revenue Growth: -3.52%
• EPS Growth: -60.93%
• Country: HK
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.52
• Shares Outstanding: 2,309,283,400
• 10 Day Avg. Volume: 17,678,747
• 30 Day Avg. Volume: 26,853,224
• PEG Ratio: -2.52
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 16.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$155.56
• Price Target Upside: 27.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$122.00 ▲(0.33% Upside)

Baidu's overall stock score reflects a mixed outlook. The most significant factor is the company's strong profitability in AI-driven segments, which is offset by declining overall revenue and operational challenges. Technical analysis indicates weak momentum, and the valuation suggests the stock is relatively expensive. The earnings call provided a balanced view, with notable growth in AI but financial difficulties. These factors collectively result in a moderate stock score.

Positive Factors

AI Cloud Revenue Growth

Strong growth in AI Cloud revenue indicates robust demand for AI-centric services, supporting Baidu's strategic focus on AI and potential for sustained revenue expansion.

Autonomous Driving Expansion

The expanded partnership for autonomous vehicles in Abu Dhabi showcases Baidu's leadership in autonomous driving, promising long-term growth and market penetration.

AI Native Marketing Services Growth

Significant growth in AI native marketing services reflects Baidu's innovation in AI monetization, enhancing its competitive edge and diversifying revenue streams.

Negative Factors

Decline in Overall Revenue

The decline in overall revenue suggests challenges in core business areas, potentially impacting Baidu's financial stability and necessitating strategic adjustments.

Operating and Net Losses

Significant operating and net losses highlight financial strain, which could limit Baidu's ability to invest in growth initiatives and affect long-term profitability.

Cash Flow Challenges

Negative cash flow indicates liquidity concerns, potentially affecting Baidu's operational flexibility and ability to fund future growth and innovation.

Baidu, Inc. Class A Business Overview & Revenue Model

Company Description

Baidu, Inc. Class A (9888) is a leading Chinese technology company specializing in internet-related services and products, primarily focused on artificial intelligence (AI) and search engine technology. Founded in 2000, Baidu operates in several sectors including online marketing services, cloud services, and autonomous driving technology. Its core products include Baidu Search, a dominant search engine in China, Baidu Maps, and Baidu Baike, an online encyclopedia. Additionally, the company is heavily invested in AI development, offering solutions across various industries including healthcare and transportation.

How the Company Makes Money

Baidu generates revenue primarily through its online marketing services, which account for a significant portion of its earnings. Advertisers pay Baidu to promote their products and services through sponsored listings and display ads on its search engine and other platforms. The company also earns revenue from cloud services by providing enterprise-level solutions and infrastructure to businesses. Furthermore, Baidu has been investing in AI and autonomous driving, creating new revenue streams through partnerships and collaborations with automotive manufacturers and tech companies. Additionally, Baidu's monetization strategies include subscription services and value-added services for its various apps and platforms.

Baidu, Inc. Class A Financial Statement Overview

Summary

Baidu shows strong profitability and a solid balance sheet with effective leverage management. However, declining revenue and cash flow challenges present potential risks, indicating the need for improved revenue growth and cash flow generation.

Income Statement

Baidu's income statement shows a strong net profit margin of 20.97% in the TTM, indicating solid profitability. However, the revenue growth rate is negative, suggesting a decline in revenue compared to previous periods. The gross profit margin remains healthy, although slightly lower than past years. EBIT and EBITDA margins are robust, reflecting efficient operations despite the revenue dip.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.33, indicating a conservative leverage position. Return on equity is improving, showing effective use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth and negative operating cash flow in the TTM. The free cash flow to net income ratio is exceptionally high, indicating potential issues with cash generation relative to reported earnings. These factors suggest potential liquidity concerns despite past strong cash flow performance.

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	28.40B	35.95B	36.53B	30.70B	27.12B	32.87B
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, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.60
• 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 HK:9888, the sentiment is Positive. The current price of 121.6 is above the 20-day moving average (MA) of 116.73, above the 50-day MA of 121.43, and above the 200-day MA of 97.50, indicating a bullish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9888.

Baidu, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0700	75 Outperform	$5.71T	25.64	20.51%	0.74%	13.15%	30.78%
1698	73 Outperform	HK$252.99B	24.97	14.50%	0.96%	13.62%	80.52%
1024	71 Outperform	HK$291.72B	15.39	25.67%	―	11.37%	16.74%
9888	63 Neutral	HK$335.25B	11.49	3.02%	―	-3.52%	-60.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.59B	7.67	12.49%	7.92%	-1.40%	22.37%
0772	52 Neutral	$43.27B	300.00	0.67%	―	-10.26%	-85.75%

Baidu, Inc. Class A Corporate Events

Baidu Considers Spin-off and Listing of Kunlunxin Subsidiary

Baidu, Inc. has announced that it is evaluating 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 could impact the company’s operational focus and market positioning. The company has committed to adhering to the relevant listing rules and will provide updates as necessary.

Baidu Reports Q3 2025 Results, Highlights AI Growth

Baidu, Inc. announced its unaudited financial results for the third quarter of 2025, highlighting the transformative value of AI across its portfolio. Despite a decrease in total revenues and net income, the company reported significant growth in AI-powered businesses, with revenue from these sectors increasing over 50% year-over-year. The expansion of AI Cloud and the scaling of Apollo Go’s driverless operations were key contributors to this growth, positioning Baidu as a leader in the AI industry. The company’s strategic investments in AI are yielding strong returns, laying a foundation for sustainable long-term growth.

Baidu, Inc. Schedules Board Meeting and Earnings Call for Q3 2025 Results

Baidu, Inc. has announced a board meeting scheduled for November 18, 2025, to approve its unaudited financial results for the third quarter of 2025. The results will be published on the websites of the Hong Kong Stock Exchange and the company after trading hours in Hong Kong and before the U.S. market opens. Additionally, Baidu will hold an earnings conference call on the same day, providing stakeholders an opportunity to discuss the financial outcomes and implications for the company’s future operations.

Baidu Announces Pricing of CNY4.4 Billion Senior Notes

Baidu, Inc. announced the pricing of its CNY4.4 billion senior unsecured notes due 2029, with an interest rate of 1.90%. The proceeds from this offering are intended for general corporate purposes, including debt repayment and interest payments. This strategic financial move is expected to enhance Baidu’s financial flexibility and support its ongoing operations and growth strategies.

Baidu Announces CNY-Denominated Senior Notes Offering

Baidu, Inc. has announced its intention to offer CNY-denominated senior unsecured notes in offshore transactions outside the United States, targeting non-U.S. investors. The proceeds from this offering are intended for general corporate purposes, including debt repayment and interest payments, which could enhance Baidu’s financial flexibility and operational capacity. This move may impact the company’s market positioning by strengthening its capital structure and providing resources for future growth initiatives.