
Baidu (BIDU) Stock Forecast & Price Target
Baidu (BIDU) Analyst Ratings
Bulls say
Baidu, as the dominant internet search engine in China, reported a 1% year-over-year growth in its core services, bolstered significantly by a robust 26% year-over-year growth in AI Cloud revenue in the fourth quarter. The company anticipates steady improvements in advertising revenue, driven by the increasing adoption of Generative AI and strong demand for GPU cloud services, prompting a revision of their FY25 Cloud growth projection to 20% year-over-year. Moreover, Baidu's nationwide 100% driverless coverage complements its full-stack service offerings, enhancing its competitive edge and promising attractive pricing solutions, while the commitment to accelerate its buyback program indicates a strong focus on enhancing shareholder returns.
Bears say
Baidu's stock outlook is negative due to a multi-year stock derating driven by significant market share losses in its core advertising business and inadequate monetization of its technological innovations. The company has forecasted a decrease in operational profit margin, lowering it to 17% for 4Q, attributed to declines in high-margin ad revenue and one-time costs from a joint venture closure. Additionally, the EBITDA margin for Baidu's core operations has dropped to 24%, reflecting ongoing pressures from macroeconomic challenges and an integration of AI that has yet to yield financial benefits.
This aggregate rating is based on analysts' research of Baidu and is not a guaranteed prediction by Public.com or investment advice.
Baidu (BIDU) Analyst Forecast & Price Prediction
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