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

• Market Cap: HK$420.23B
• Dividend Yield: N/A
• Average Volume (3M): 26.85M
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.41
• Revenue Growth: -2.92%
• EPS Growth: -57.12%
• 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$165.36
• Price Target Upside: 8.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$157.00 ▲(2.75% Upside)

Overall score reflects solid balance sheet strength and strong AI segment momentum, but is held back by declining overall revenue, cash flow weaknesses, and a premium valuation (P/E 48.664). Technicals are supportive with a clear uptrend, though momentum is nearing overbought levels.

Positive Factors

AI Cloud Revenue Growth

Sustained double-digit AI Cloud growth signals durable enterprise demand for AI infrastructure and services. Recurring, usage-based cloud revenue supports long-term margin expansion and reduces reliance on cyclical ad sales, strengthening revenue diversification and strategic positioning in AI-enabled enterprise markets.

AI-native Marketing Momentum

Rapid adoption of AI-native marketing products creates a higher-margin, differentiated revenue stream. Structural shift to AI agents and digital humans can deepen client stickiness, raise monetization per user, and provide scalable product-led growth that complements traditional search advertising over the medium term.

Solid Balance Sheet & Equity Base

Moderate leverage and a strong equity base give Baidu financial flexibility to fund AI R&D, cloud capex, or strategic M&A without excessive refinancing risk. A healthy balance sheet supports multiyear investments in infrastructure and commercialization of capital-intensive initiatives like Apollo Go.

Negative Factors

Declining Overall Revenue

A contracting top line, driven by an 18% decline in online marketing, signals structural pressure in Baidu's core monetization engine. Sustained revenue declines can erode scale economics, weaken ad pricing power, and force greater reliance on newer segments before they reach material contribution.

Weak Operating Cash Flow

Persistent negative operating and free cash flow undermines internal financing capacity for capex and R&D, increasing dependence on external funding or asset sales. Over time this can constrain strategic flexibility and delay profitable scaling of AI and autonomous initiatives if cash conversion does not improve.

Large Impairment and Operating Losses

A RMB 16.2B impairment and related operating losses reflect overhang from past capex or misaligned asset mix. Such write-downs damage earnings quality, may signal execution risks in capital allocation, and could prompt tighter capital discipline that slows investment in strategic but capital-intensive initiatives.

Baidu, Inc. Class A Business Overview & Revenue Model

Company Description

Baidu, Inc. offers internet search services in China. It operates through Baidu Core and iQIYI segments. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. Baidu, Inc. has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

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

Mixed fundamentals: strong net profit (20.97% margin) and EBITDA margin (27.68%) plus a solid balance sheet (debt-to-equity 0.33; equity ratio 59.56%), but weakening revenue trend (TTM revenue growth -1.79%), a negative EBIT margin, and weak cash quality with negative operating and free cash flow in the TTM period.

Income Statement

Baidu's income statement shows mixed results. The TTM data indicates a decline in revenue growth rate by 1.79%, which is concerning. However, the company maintains a strong net profit margin of 20.97% and a healthy EBITDA margin of 27.68%. The EBIT margin is negative, indicating operational challenges. Overall, while profitability remains robust, the revenue decline and negative EBIT margin are areas of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity (ROE) is 10.43%, which is a positive sign of profitability. The equity ratio stands at 59.56%, showing a strong equity base relative to total assets. Overall, Baidu's balance sheet is solid, with manageable debt levels and good equity strength.

Cash Flow

Cash flow analysis reveals challenges, with a negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is positive at 69.25%, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is high at 38.17, suggesting reliance on non-operational cash flows. Overall, cash flow management needs improvement.

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: 152.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 152.8 is above the 20-day moving average (MA) of 149.08, above the 50-day MA of 131.23, and above the 200-day MA of 106.39, indicating a bullish trend. The MACD of 7.14 indicates Positive momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 67.68 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
1024	77 Outperform	HK$349.90B	18.28	25.67%	―	11.37%	16.74%
0700	75 Outperform	$5.48T	23.44	20.51%	0.75%	13.15%	30.78%
1698	73 Outperform	HK$184.53B	17.21	14.50%	1.01%	13.62%	80.52%
0772	67 Neutral	HK$36.57B	253.54	0.67%	―	-10.26%	-85.75%
9888	63 Neutral	HK$420.23B	50.45	3.29%	―	-2.92%	-57.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.54B	6.24	12.49%	8.13%	-1.40%	22.37%

Baidu, Inc. Class A Corporate Events

Baidu Moves Ahead With Planned Hong Kong Spin-Off of AI Chip Unit Kunlunxin

Baidu, Inc. has advanced plans to spin off and separately list its AI chip subsidiary Kunlunxin on the Main Board of the Hong Kong Stock Exchange, as Kunlunxin has confidentially submitted a Form A1 listing application through its joint sponsors. The spin-off is expected to be executed via a global offering of Kunlunxin shares, combining a Hong Kong public offering with a placement to institutional and professional investors, and Baidu intends to retain Kunlunxin as a subsidiary after the transaction. Key parameters of the deal, including offering size, structure, and Baidu’s post-offering stake, remain undecided, and the transaction is still contingent on regulatory approvals in Hong Kong and mainland China as well as final decisions by both companies, leaving uncertainty on timing and execution for shareholders and prospective investors.

The most recent analyst rating on (HK:9888) stock is a Hold with a HK$122.00 price target. To see the full list of analyst forecasts on Baidu, Inc. Class A stock, see the HK:9888 Stock Forecast page.

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.

The most recent analyst rating on (HK:9888) stock is a Hold with a HK$122.00 price target. To see the full list of analyst forecasts on Baidu, Inc. Class A stock, see the HK:9888 Stock Forecast page.

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.

The most recent analyst rating on (HK:9888) stock is a Buy with a HK$175.00 price target. To see the full list of analyst forecasts on Baidu, Inc. Class A stock, see the HK:9888 Stock Forecast page.

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.

The most recent analyst rating on (HK:9888) stock is a Buy with a HK$164.00 price target. To see the full list of analyst forecasts on Baidu, Inc. Class A stock, see the HK:9888 Stock Forecast page.