113.70 +0.24 (0.21%)
After hours: 7:44PM EDT
|Bid||113.50 x 800|
|Ask||113.98 x 2200|
|Day's Range||113.30 - 115.77|
|52 Week Range||113.30 - 274.00|
|Beta (3Y Monthly)||1.12|
|PE Ratio (TTM)||8.84|
|Earnings Date||Jul 29, 2019 - Aug 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||209.15|
The bottom is falling out for Baidu (NASDAQ:BIDU). Baidu stock fell by almost one-quarter on Friday and Monday. Excluding a very brief dip in 2015, BIDU stock now sits at its lowest level in almost six years.Source: Shutterstock The near-term catalyst has been BIDU's disappointing first-quarter report issued on Thursday afternoon. But there's more weighing on BIDU stock than just a single earnings report. As I wrote earlier this year, there have been significant concerns about the health of its business for a long time. * 7 Safe Stocks to Buy for Anxious Investors Its Q1 results and, perhaps more importantly, its Q2 guidance, suggest those concerns are quite realistic. And so I wouldn't recommend that investors try and time the bottom of BIDU stock just yet.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Baidu's EarningsOn the surface, Baidu's earnings look modestly disappointing, but they don't seem bad enough to drive such a steep fall. Adjusted earnings per share of 41 cents did miss analysts' consensus estimate by $0.16. But its revenue growth in Chinese yuan rose 15%, in-line with the consensus outlook, and its sales actually grew 21%, excluding the divestiture of a number of its businesses last year.The earnings miss sounds disappointing, but the overall numbers don't seem terribly out of line. The company's revenue is still growing. BIDU had warned that its profits would drop in the first half of the year, partly due to higher spending on its search business.But looking more closely, two factors drove Baidu's top-line growth. The first was its ownership of iQiyi (NASDAQ:IQ), the so-called Netflix (NASDAQ:NFLX) of China. Baidu still owns roughly two-thirds of iQiyi, so IQ's results and its growth are reflected in Baidu's consolidated numbers.But Baidu's online marketing revenue, the key part of its wholly-owned business, increased just 3%. And Baidu spent an enormous sum on marketing in the quarter. SG&A, which includes marketing expenses, rose a stunning 93% year-over-year. Some of that increase was due to BIDU's efforts to support iQiyi's growth. But the operating income of Baidu's core operations plunged a stunning 67% year-over-year.Outside of iQiyi, then, Baidu essentially bought, at an expensive price, what little revenue growth it could muster. And Q2 isn't going to be much better. Baidu guided for consolidated revenue to rise just 1% to 6% excluding divestitures, representing a significant slowdown. The Baidu Stock Price PlungeSo the reaction to the earnings report does make some sense. Baidu's stake in IQ accounts for roughly 20% of its market cap; IQ shares have fallen on BIDU's results. BIDU's legacy business seems to have a significant top-line growth problem. And its increased spending is causing its profits to not only decline, but to decline sharply. BIDU stock simply has a very different fundamental profile after its earnings than it did previously.Beyond the numbers, the results confirm the fears that have dogged Baidu stock for some time. Its desktop search business is being displaced by greater use of apps, which bypass browsers and Baidu altogether. (That is also a concern for Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL), to which Baidu is often compared, though Alphabet has done a better job of holding onto its business.) Baidu has added some self-inflicted wounds, including a scandal surrounding medical search results back in 2016 and complaints about its news results earlier this year.BIDU managed to come out the other side of the 2016 scandal. But its Q2 guidance, in particular, suggests a deceleration of growth to levels not seen since 2016-2017. That, in turn, implies that Baidu's brand in China has taken another hit from which it may not be as easy to recover.Outside of search, Baidu hasn't proven it can win. Its income from equity investments (which does not include iQiyi) declined 57% in Q1. Its efforts in artificial intelligence and the cloud don't appear to be moving the needle much. If Search starts to fade, it's not clear that BIDU will have an answer. Baidu Stock Doesn't Look Cheap EnoughBaidu stock looks awfully cheap on the surface. The company closed Q1 with over $18 billion in cash, excluding the funds held by iQiyi. Its stake in IQ is worth close to $10 billion. Combined, those assets support over half of the current market capitalization of BIDU stock.Based on those assets and analysts' 2019 consensus EPS estimate, it appears that Baidu stock is trading at a single-digit multiple to the profits of its core business. But it's worth noting that those EPS estimates are going to come down, and potentially sharply, in the wake of the Q1 results. BIDU stock may look cheap, but there's a wealth of evidence at the moment which suggests that it should be cheap.Meanwhile, the trade war still hangs over all Chinese stocks. But Baidu stock has badly lagged even its peers recentl. Big Chinese names like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and Tencent (OTCMKTS:TCEHY) all posted solid earnings reports last week, and their shares have risen so far this year. What happens to BIDU stock if and when investors' views on China deteriorate?The response by Baidu stock over the last two sessions is not an overreaction, or a panic, or a case of investors not paying attention. There have been real concerns about BIDU stock for some time now, and those concerns seem supported by both its Q1 results and its Q2 guidance. So it's not surprising that Baidu stock has fallen so hard. And it wouldn't be a surprise if BIDU keeps falling.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post After Earnings Miss, Baidu Stock Can Get Even Cheaper appeared first on InvestorPlace.
The tariff battle between China and U.S. has become more than just talk. After President Trump raised tariffs on hundreds of billions of dollars worth of imports from China, Trump has now targeted Huawei adding it to a trade blacklist. Huawei is a big company with around $100 billion in revenue last year. The intelligence community […]
Baidu, Inc. (BIDU) ranked No. 1 in China’s smart speaker market and became a top-three global player with Amazon and Google in the first quarter of 2019, according to research companies Canalys and Strategy Analytics, as Baidu’s conversational AI system DuerOS continues to gain momentum in device shipment and ecosystem development. According to Canalys and Strategy Analytics, China has overtaken the United States as the world’s largest smart speaker market after seeing about 500% growth year-on-year.
Traditional lenders have been cutting staff and downsizing their branch network amid competition from online payment giants such as Alibaba Group Holding Ltd. affiliate Ant Financial and Tencent Holdings Ltd. More banking transactions in China are now completed outside brick-and-mortar branches. A representative for Baidu declined to comment.
The Latest on the NASDAQ, Amazon, Baidu, and iQiyi(Continued from Prior Part)iQiyi continues to see robust revenue growth, but its losses are expandingChinese video-streaming company iQiyi (IQ) spun off from Baidu (BIDU) through a blockbuster $1.5
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Baidu Inc. Hong Kong, May 22, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Baidu Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The Latest on the NASDAQ, Amazon, Baidu, and iQiyi(Continued from Prior Part)Baidu reported its first quarterly loss since going publicChinese search engine giant Baidu (BIDU) has seen its stock tank 23% since it reported its first-quarter earnings
The Latest on the NASDAQ, Amazon, Baidu, and iQiyi(Continued from Prior Part)Amazon is investing $575 million in food-delivery business DeliverooAs Amazon’s (AMZN) core e-commerce business is slowing down, it’s looking not only to expand some of
Blame the reaction in Baidu (NASDAQ:BIDU) on what you will. But following earnings BIDU stock is looking closer to being parked near value off and on the price chart than a car wreck with no survivors. Let me explain.Source: Shutterstock Similar to how Alibaba (NYSE:BABA) is often regarded as China's answer to Amazon (NASDAQ:AMZN), Baidu has long been likened to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). And for good reason. The company's dominance in internet search market and BIDU stock's increasingly diverse web of ancillary technology-driven ventures make for a solid comparison.But on the heels of a poorly received quarterly confessional, the buck stops there for BIDU stock bulls. Late last week, Baidu reported its first quarterly loss in 14 years as a publicly traded company. Making matters worse, the earnings whiff was also below a well-prepped Street's forecast.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMuch of the blame behind Baidu's quarterly loss is tied to Baidu's aggressive investment in autonomous driving and so far, what has proven to be a costly expansion of the company's growing ecosystem. But there is good news in plain sight after BIDU stock fell 25% in two trading sessions. * 7 Stocks to Buy for Over 20% Upside Potential The overlooked upside to Baidu's report and Wall Street's reaction are that revenues did increase by 15% from the year-ago period while also topping analyst views. Further, with BIDU stock now sporting a historically cheap valuation and shares parked near deep value territory on the price chart, there's good reason for bullish investors to be optimistic rather than mournful. BIDU Stock Monthly ChartNot that the writing was entirely on the wall. However, there have been strong technical clues for more than a couple months, if not more, that something was not right with BIDU stock prior to last week's earnings-driven fallout.From the monthly perspective, some technicians could point to Baidu's choppy attempt and ultimate failure at all-time-highs last year as a possible first clue of trouble ahead. I wish my own observations had led to that conclusion. Nevertheless, BIDU stock's breakdown of technical support in mid-2018 and continued relative weakness led to a bearish flag pattern stationed in layers of bearish resistance.And the markets haven't helped. Look at all the red in the past few weeks, thanks to trade war headlines. Alibaba stock is down over 12% in the last month, compared to 30% losses for BIDU stock. But remember that Alibaba's earnings were more positive. BIDU Stock TradePersonally, I won't call a bottom in BIDU stock -- not here or now, at least. The monthly stochastics are oversold and shares are near a test of the 62% support dating back to the financial crisis. That's the good news. But it's not enough to consider buying shares right now.The problem with calling a low is Baidu has also just broken a couple key trend-lines, stochastics is actually crossing bearishly down and 2015's key low at $100 isn't so far removed from current prices as to think a test isn't in the cards.Allowing for volatile wiggle room, BIDU stock has the area from $95-$115 to find a supportive intermediate low to turn shares higher. In the interim though and until conditions begin to also firm up on the weekly chart, BIDU stock is a solid name to put on the radar for future buying opportunities.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Baidu, Like Alibaba Stock, Is Falling Into Value Territory appeared first on InvestorPlace.
Baidu's (BIDU) target price has been lowered by analysts at Susquehanna due to weaker-than-expected results in the first quarter.
A Look at NASDAQ’s Worst Performers YesterdayNASDAQ 100On May 20, the NASDAQ 100 Index continued to tank for the second consecutive day. In the last couple of days combined, it has lost nearly 3%. In the weeks ended May 10 and May 17, the NASDAQ
Moody's Investors Service says that Baidu Inc.'s modest 1Q 2019 results will not immediately affect its A3 issuer and senior unsecured ratings, or the positive outlook. "While Baidu's profit margins will weaken due to the company's investments in new strategic business initiatives over the next 6-12 months, we expect that its solid revenue and cash flow generation, supported by its leading market position, will remain intact," says Lina Choi, a Moody's Senior Vice President. "We also expect Baidu will maintain a solid net cash position, which will provide it with a buffer against its ongoing investment needs," adds Choi, also Moody's lead analyst for Baidu.
The internet search company disappointed Wall Street with its results last week. Analysts say things could improve in the second half of the year.
The U.S. no longer leads the smart speaker market, according to new data from Canalys out this morning, which found China's smart speaker shipments grew by 500% in Q1 2019 to overtake the U.S. and achieve a 51% market share. More specifically, Baidu had a huge quarter thanks to an exclusive sponsorship deal with China's national TV channel, CCTV, on its New Year's Gala on Chinese New Year's Eve -- one of the biggest entertainment shows in terms of viewer numbers.
These Tech Stocks Lost Big on May 17Baidu reports a GAAP loss in the first quarterShares of Chinese (FXI) tech giant Baidu (BIDU) fell 16.5% on May 17, 2019. Also known as China’s Google, Baidu reported its first-quarter earnings results on May
Baidu Inc (NASDAQ: BIDU ) reported first-quarter results Thursday that were ahead of expectations, but announced hugely disappointing second-quarter guidance. While the quarterly guidance reflects macro, ...