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

• Market Cap: HK$246.26B
• Dividend Yield: N/A
• Average Volume (3M): 10.29M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.32
• Revenue Growth: -2.93%
• EPS Growth: 16.29%
• Country: HK
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): 2.56
• Shares Outstanding: 2,280,439,500
• 10 Day Avg. Volume: 7,213,379
• 30 Day Avg. Volume: 10,290,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$101.00
• Price Target Upside: 18.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Baidu's overall stock score reflects a solid financial foundation with strong growth in AI and autonomous driving services. Despite challenges in online marketing and iQIYI, the company's strategic focus on AI provides a promising outlook. The valuation indicates potential for growth, and while technical indicators are mixed, the long-term prospects remain positive.

Positive Factors

AI Development

Baidu leverages its AI Ernie model to enhance its enterprise cloud offerings, which is a key driver for growth.

Cloud Expansion

The company also expects the launch of the new open-source ERNIE 4.5 model and Ernie Bot being made free to further drive its cloud usage.

Negative Factors

Earnings Decline

3Q24 core earnings dropped by 19% year over year, 5% below market expectations, due to increased challenges.

Monetization Uncertainty

A clear monetisation plan for the AI search business is lacking, affecting the stock rating.

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 primarily generates revenue through its online marketing services, which include pay-for-performance services, where businesses pay for their advertisements to appear in Baidu's search results, and display-based marketing, where companies pay for display advertisements across Baidu's network. The company also earns from its AI cloud services, which offer cloud computing, machine learning, and data analytics solutions to businesses. Another revenue stream comes from its investments in autonomous driving and smart transportation solutions, where Baidu leverages its AI capabilities to develop technologies for self-driving cars and smart city infrastructures. Additionally, Baidu has strategic partnerships with various technology firms and service providers to enhance its service offerings and expand its market reach, contributing to its overall earnings.

Baidu, Inc. Class A Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
133.13B	134.60B	123.67B	124.49B	107.07B
	Gross Profit
67.02B	69.57B	59.74B	60.18B	51.92B
	EBIT
21.27B	21.86B	-5.58B	-8.46B	-8.37B
	EBITDA
35.95B	36.53B	14.51B	14.10B	14.34B
	Net Income Common Stockholders
23.76B	20.32B	7.56B	7.59B	22.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.44B	193.90B	174.00B	180.09B	162.18B
	Total Assets
427.78B	406.76B	390.97B	380.03B	332.71B
	Total Debt
79.32B	84.59B	91.35B	91.51B	82.59B
	Net Debt
54.49B	59.36B	38.20B	54.66B	46.81B
	Total Liabilities
144.17B	144.15B	153.17B	156.08B	140.87B
	Stockholders Equity
263.62B	243.63B	223.48B	211.46B	182.70B
Cash Flow		Free Cash Flow
13.10B	25.32B	17.78B	8.88B	18.87B
	Operating Cash Flow
21.23B	36.62B	26.17B	20.12B	24.20B
	Investing Cash Flow
-8.55B	-50.40B	-3.94B	-31.44B	-27.55B
	Financing Cash Flow
-13.76B	-14.16B	-6.39B	23.40B	5.67B

Baidu, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 85 is above the 20-day moving average (MA) of 83.63, below the 50-day MA of 87.61, and below the 200-day MA of 86.56, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9988	81 Outperform	HK$2.36T	17.61	11.98%	0.80%	3.92%	27.80%
1024	78 Outperform	HK$230.74B	13.87	27.71%	―	9.84%	142.09%
9888	74 Outperform	HK$246.26B	9.82	9.16%	―	-2.93%	16.29%
9618	74 Outperform	HK$377.09B	9.06	17.58%	2.95%	4.83%	76.96%
Sector *	60 Neutral	$13.50B	7.33	-2.74%	3.80%	2.09%	-39.49%

Baidu, Inc. Class A Corporate Events

Baidu, Inc. Announces Annual General Meeting for June 2025

Baidu, Inc. has announced the scheduling of its annual general meeting of shareholders, which will be held on June 27, 2025, at its campus in Beijing. The meeting will not include any proposals for shareholder approval, and the company has set May 27, 2025, as the record date for determining shareholder eligibility to attend. This announcement is part of Baidu’s ongoing corporate governance practices, ensuring transparency and engagement with its shareholders.

Baidu, Inc. Schedules Q1 2025 Financial Results Announcement and Conference Call

Baidu, Inc. has announced a board meeting scheduled for May 20, 2025, to approve its unaudited financial results for the first quarter of 2025. The results will be made available on May 21, 2025, after trading hours in Hong Kong and before the U.S. market opens. The company will also hold an earnings conference call on the same day, providing stakeholders with insights into its financial performance and strategic direction.

Baidu Completes CNY10 Billion Senior Notes Offering

Baidu, Inc. has successfully completed a CNY10 billion offering of CNY-denominated senior unsecured notes, comprising CNY7.5 billion of 2.70% notes due 2030 and CNY2.5 billion of 3.00% notes due 2035. The proceeds are intended for general corporate purposes, including debt repayment and interest payments. This strategic financial move is expected to bolster Baidu’s financial flexibility and support its ongoing operations, potentially enhancing its competitive position in the industry.

Baidu Completes $2 Billion Exchangeable Bonds Offering

Baidu, Inc. has successfully completed a US$2 billion offering of zero-coupon exchangeable bonds due in 2032, which were sold in offshore transactions outside the United States. The company intends to use the proceeds for repaying existing debts and general corporate purposes. This move is part of Baidu’s strategic financial management and could enhance its liquidity position, potentially impacting its market operations and stakeholder interests positively. The bonds have commenced trading on the Frankfurt Stock Exchange, reflecting Baidu’s efforts to diversify its financial instruments and investor base.

Baidu Announces CNY10 Billion Senior Notes Offering

Baidu, Inc. announced the pricing of its CNY10 billion senior unsecured notes offering, consisting of CNY7.5 billion of 2.70% notes due 2030 and CNY2.5 billion of 3.00% notes due 2035. The company plans to use the proceeds for general corporate purposes, including debt repayment and interest payments. This move is expected to enhance Baidu’s financial flexibility and support its growth strategies in the competitive Chinese internet market.

Baidu Announces CNY-Denominated Senior Notes Offering

Baidu, Inc. 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 impact the company’s financial strategy and market positioning.

Baidu Acquires JOYY’s YY Live Streaming Business for $2.1 Billion

Baidu, Inc. announced the acquisition of JOYY Inc.’s live streaming business in mainland China, known as YY Live, for approximately $2.1 billion. This strategic move allows Baidu to enhance its video-based entertainment offerings and leverage the released funds to invest in its cloud and AI infrastructure, potentially strengthening its position in the technology and entertainment sectors.

Baidu Announces Key Board and Committee Changes

Baidu, Inc. has announced a significant change in its board and committee composition, appointing Ms. Xiaodan Liu as a new independent director and chair of the audit committee, effective February 23, 2025. Ms. Liu, who brings over two decades of financial market experience, will replace Mr. Brent Callinicos, who resigned for personal reasons. This strategic appointment could enhance Baidu’s governance and financial oversight, given Ms. Liu’s extensive background in leading financial institutions and her active role in capital markets policymaking.

Baidu Reports 2024 Financial Results Amidst AI-Driven Transformation

Baidu announced its unaudited financial results for the fourth quarter and fiscal year 2024, marking a significant year of transformation towards an AI-first business. The company saw a 26% year-over-year revenue growth in its AI Cloud business, despite challenges in its online marketing segment. CEO Robin Li highlighted the validation of Apollo Go’s business model and expressed confidence in future AI investments driving substantial results in 2025. While the company faced a slight decline in total revenues and operating income compared to the previous year, its strategic focus on AI is expected to foster long-term success.