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

• Market Cap: HK$243.31B
• Dividend Yield: N/A
• Average Volume (3M): 10.33M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.32
• Revenue Growth: -1.73%
• EPS Growth: 32.35%
• Country: HK
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 90
• Industry: Internet Content & Information
• EPS (TTM): 2.52
• Shares Outstanding: 2,280,439,500
• 10 Day Avg. Volume: 12,823,629
• 30 Day Avg. Volume: 10,328,372
• PEG Ratio: -1.12
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.44
• 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$94.75
• Price Target Upside: 10.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: HK$97.00 ▲(13.05%Upside)

Baidu's stock score is driven by solid financial performance and a compelling valuation, despite mixed technical indicators and concerns over cash flow due to high capital investments. Strong growth in AI initiatives and international expansion are positive, but declining revenues in some segments pose challenges.

Positive Factors

AI Innovation

Baidu leverages its AI Ernie model to enhance its enterprise cloud offerings and attract more enterprise users.

Cloud Business Growth

AI cloud business is the key driver, with robust cloud revenue growth of 42% driven by growth in Gen AI and foundation model-related revenue.

Negative Factors

Ad Revenue Decline

Expect persistent weakness in core ad revenue due to higher emphasis on AI search upgrade, expecting a decline in FY25.

Earnings Outlook

Cut FY25/26/27F earnings by 15%/17%/22% on gloomy outlook for core ad business with delayed AI search monetisation plan.

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

Baidu's financial performance is solid with consistent revenue growth and improving profitability metrics. The balance sheet is strong, though debt levels should be monitored. Cash flow is robust but the negative free cash flow due to high capital investments needs attention.

Income Statement

Baidu has demonstrated consistent revenue growth, with a slight dip in 2024. The gross profit and net profit margins are strong, reflecting effective cost management. The company has shown improvement in EBIT and EBITDA margins over the years, indicating enhanced operational efficiency. However, the recent slight decline in revenue warrants attention.

Balance Sheet

The company maintains a healthy equity base with a favorable equity ratio, suggesting strong asset backing. The debt-to-equity ratio indicates moderate leverage, which is manageable but should be monitored. ROE shows improvement, reflecting better utilization of equity, yet there's room for further enhancement in profitability.

Cash Flow

Baidu's cash flow generation is robust, with a solid operating cash flow to net income ratio, signifying strong cash conversion. The free cash flow has shown fluctuations but remains positive, indicating good liquidity management. The free cash flow growth rate needs improvement to ensure sustained financial flexibility.

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: Neutral
• Last Price: 85.80
• 50DMA: Positive
• 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 Neutral. The current price of 85.8 is above the 20-day moving average (MA) of 84.12, above the 50-day MA of 84.65, and below the 200-day MA of 86.53, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9888	75 Outperform	HK$243.31B	8.73	9.84%	―	-1.73%	32.35%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
MPNGF		$109.75B	19.10	23.82%	―	―	―
XIACF		$178.79B	39.80	14.98%	―	―	―
9618	84 Outperform	HK$421.17B	8.38	19.79%	22.77%	7.67%	90.63%
9988	81 Outperform	HK$2.26T	15.92	13.02%	2.74%	3.92%	27.80%
1024	80 Outperform	HK$267.63B	15.33	25.82%	―	9.42%	33.34%

Baidu, Inc. Class A Corporate Events

Baidu Reports Strong Q1 2025 Results with AI Cloud Surge and Robotaxi Expansion

Baidu, Inc. announced its unaudited financial results for the first quarter of 2025, highlighting a 7% year-over-year growth in Baidu Core revenue, driven by a 42% increase in AI Cloud services. The company also achieved a significant milestone by expanding its Apollo Go robotaxi service to Dubai and Abu Dhabi, reinforcing its commitment to global markets. The results underscore Baidu’s strategic focus on AI, positioning it for long-term growth opportunities in the AI era.

The most recent analyst rating on (HK:9888) stock is a Hold with a HK$85.00 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. 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.