tiprankstipranks
Trending News
More News >
Baidu, Inc. Class A (HK:9888)
:9888
Hong Kong Market
Advertisement

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

Compare
123 Followers

Top Page

HK:9888

Baidu, Inc. Class A

(9888)

Select Model
Select Model
Select Model
Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
HK$128.00
▼(-3.90% Downside)
Baidu's overall stock score is driven by strong technical indicators and a solid valuation, despite financial performance challenges and mixed earnings call results. The company's focus on AI and autonomous driving presents growth opportunities, but declining revenue and cash flow issues need addressing.
Positive Factors
AI Cloud Revenue Growth
The strong growth in AI cloud revenue indicates Baidu's successful expansion in AI services, which can drive long-term revenue diversification and resilience.
Autonomous Driving Expansion
The rapid expansion of autonomous driving services positions Baidu as a leader in this emerging market, promising future growth and competitive advantage.
AI Transformation of Search
The integration of AI in search enhances user experience and engagement, potentially boosting Baidu's core business and advertising revenue over the long term.
Negative Factors
Declining Online Marketing Revenue
The decline in online marketing revenue highlights challenges in Baidu's core business, potentially impacting its primary revenue stream and necessitating strategic adjustments.
Negative Free Cash Flow
Negative free cash flow raises concerns about Baidu's cash generation ability, which could affect its financial flexibility and investment capacity in the long term.
Revenue Decrease in iQIYI
The revenue decline in iQIYI suggests challenges in Baidu's media segment, potentially affecting overall revenue growth and necessitating strategic focus to regain traction.

Baidu, Inc. Class A (9888) vs. iShares MSCI Hong Kong ETF (EWH)

Baidu, Inc. Class A Business Overview & Revenue Model

Company DescriptionBaidu, 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 MoneyBaidu primarily generates revenue through its online marketing services, where businesses pay for advertising on Baidu's platforms, leveraging its search engine's massive user base for visibility and customer acquisition. The company's advertising services include pay-for-performance services and other marketing offerings. Additionally, Baidu has been expanding its revenue streams by investing in artificial intelligence and cloud computing, offering AI solutions and cloud-based services to enterprises. Partnerships and collaborations in the autonomous driving and smart device sectors also contribute to Baidu's revenue, as it commercializes its AI technologies and products.

Baidu, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 20, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted substantial growth in Baidu's AI cloud and autonomous driving sectors, as well as significant progress in AI transformation of search. However, these were offset by declines in online marketing revenue and a negative free cash flow, indicating mixed performance across different business areas.
Q2-2025 Updates
Positive Updates
AI Cloud Revenue Growth
AI cloud revenue grew by 27% year-over-year to RMB 6.5 billion, driven largely by the demand for cost-effective end-to-end AI products and solutions.
Autonomous Driving Expansion
Apollo Go provided over 2.2 million fully driverless rides, marking a 148% year-over-year increase, and announced partnerships with Uber and Lyft for global expansion.
Baidu Core Non-Online Marketing Revenue
Non-online marketing revenue exceeded RMB 10 billion for the first time, up 34% year-over-year.
AI Transformation of Search
AI-generated content reached 64% of mobile search result pages by July, indicating rapid progress in AI transformation.
Negative Updates
Online Marketing Revenue Decline
Baidu Core's online marketing revenue decreased by 15% year-over-year to RMB 16.2 billion.
Revenue Decrease in iQIYI
Revenue from iQIYI decreased 11% year-over-year.
Negative Free Cash Flow
Free cash flow was negative RMB 4.7 billion, primarily due to increased investment in AI business.
Company Guidance
During Baidu's Second Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. Baidu Core's total revenue reached RMB 26.3 billion, with AI Cloud revenue growing 27% year-over-year to RMB 6.5 billion. Notably, Baidu Core's non-online marketing revenue exceeded RMB 10 billion for the first time, marking a 34% year-over-year increase. The company's autonomous driving service, Apollo Go, provided over 2.2 million fully driverless rides, a 148% year-over-year growth. Baidu's AI transformation of Search has resulted in AI-generated content reaching over 50% of mobile search result pages by the end of June. Despite these advancements, Baidu's overall total revenue decreased by 4% year-over-year to RMB 22.7 billion, with Baidu Core's online marketing revenue decreasing by 15% year-over-year to RMB 16.2 billion. The company remains committed to its long-term mission, focusing on AI innovation to drive real-world value.

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
75
Positive
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
80
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue132.85B133.13B134.60B123.67B124.49B107.07B
Gross Profit62.59B67.02B69.57B59.74B60.18B51.92B
EBITDA34.64B35.95B36.53B30.70B27.12B32.87B
Net Income27.86B23.76B20.32B7.56B10.23B22.47B
Balance Sheet
Total Assets450.57B427.78B406.76B390.97B380.03B332.71B
Cash, Cash Equivalents and Short-Term Investments123.87B127.44B193.90B174.00B180.09B162.18B
Total Debt91.84B79.32B84.59B91.35B91.51B82.59B
Total Liabilities152.66B144.17B144.15B153.17B156.08B140.87B
Stockholders Equity275.06B263.62B243.63B223.48B211.46B182.70B
Cash Flow
Free Cash Flow-9.28B13.10B25.32B17.78B8.88B18.87B
Operating Cash Flow-243.00M21.23B36.62B26.17B20.12B24.20B
Investing Cash Flow-29.35B-8.55B-50.40B-3.94B-31.44B-27.55B
Financing Cash Flow4.28B-13.76B-14.16B-6.39B23.40B5.67B

Baidu, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price133.20
Price Trends
50DMA
99.96
Positive
100DMA
92.59
Positive
200DMA
89.35
Positive
Market Momentum
MACD
10.36
Negative
RSI
71.78
Negative
STOCH
65.62
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 133.2 is above the 20-day moving average (MA) of 118.45, above the 50-day MA of 99.96, and above the 200-day MA of 89.35, indicating a bullish trend. The MACD of 10.36 indicates Negative momentum. The RSI at 71.78 is Negative, neither overbought nor oversold. The STOCH value of 65.62 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 Risk Analysis

Baidu, Inc. Class A disclosed 108 risk factors in its most recent earnings report. Baidu, Inc. Class A 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, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$366.16B20.8024.73%10.72%17.05%
79
Outperform
HK$6.01T27.0318.66%0.68%11.41%39.10%
77
Outperform
HK$361.65B12.5610.28%-1.69%42.04%
76
Outperform
HK$259.89B25.6512.21%0.76%10.25%84.17%
71
Outperform
HK$24.55B9.148.64%6.40%0.99%14.41%
60
Neutral
HK$40.33B279.60-1.14%-10.26%-85.75%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9888
Baidu, Inc. Class A
133.20
22.70
20.54%
HK:0700
Tencent Holdings
663.00
189.53
40.03%
HK:0772
China Literature
39.48
4.83
13.94%
HK:9898
Weibo Corp Class A
100.50
23.99
31.36%
HK:1024
Kuaishou Technology Class B
84.60
26.18
44.81%
HK:1698
Tencent Music Entertainment Group Class A
92.25
37.94
69.86%
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: Sep 18, 2025