Baidu (BIDU) AI Stock Analysis

• Market Cap: $47.08B
• Dividend Yield: N/A
• Average Volume (3M): 7.20M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.04
• Revenue Growth: -1.32%
• EPS Growth: 42.56%
• Country: US
• Employees: 35,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.91
• Shares Outstanding: 278,228,360
• 10 Day Avg. Volume: 6,847,359
• 30 Day Avg. Volume: 7,197,072
• PEG Ratio: 0.47
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 16.38
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: 0.81
• 1Y Price Target: $124.35
• Price Target Upside: -12.43% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $158.00 ▲(11.27% Upside)

Baidu's strong technical momentum and reasonable valuation are significant positives, supported by robust profitability and strategic investments in AI and cloud technologies. However, challenges in revenue growth and cash flow, along with declining online marketing revenue, present risks that temper the overall score.

Positive Factors

AI Cloud Revenue Growth

The significant growth in AI cloud revenue indicates Baidu's successful expansion in cloud services, which is crucial for long-term diversification and resilience against fluctuations in its core advertising business.

Autonomous Driving Expansion

The expansion of Baidu's autonomous driving service, Apollo Go, highlights its leadership in this innovative field, potentially opening new revenue streams and enhancing its competitive edge in the AI-driven mobility sector.

International Partnerships

Strategic partnerships with global leaders like Uber and Lyft position Baidu to leverage international expertise and market access, strengthening its global presence in autonomous driving technology.

Negative Factors

Decline in Online Marketing Revenue

The decline in online marketing revenue reflects challenges in Baidu's primary income stream, which could impact overall profitability and necessitate a shift towards more sustainable revenue sources.

Overall Revenue Decline

A decline in total revenue indicates potential challenges in market demand or competitive pressures, which could affect Baidu's growth trajectory if not addressed through strategic innovations or market expansions.

Negative Free Cash Flow

Negative free cash flow signals potential liquidity issues, affecting Baidu's ability to fund operations and investments without relying on external financing, which could strain financial flexibility.

Baidu Business Overview & Revenue Model

Company Description

Baidu, Inc. (BIDU) is a leading Chinese multinational technology company specializing in Internet-related services and products, artificial intelligence (AI), and autonomous driving technology. Founded in 2000 and headquartered in Beijing, Baidu operates the largest search engine in China, providing users with a comprehensive suite of online services including search, cloud storage, and digital advertising. The company is also heavily invested in AI initiatives, developing smart devices and applications that leverage machine learning and natural language processing.

How the Company Makes Money

Baidu generates revenue primarily through its online marketing services, which account for a significant portion of its income. The company operates a pay-per-click advertising model, allowing businesses to promote their products and services via sponsored listings on its search engine and other platforms. In addition to online marketing, Baidu has expanded its revenue streams to include cloud services, which provide businesses with data storage and analytics solutions. The company is also exploring monetization opportunities in its autonomous driving segment through partnerships with automotive manufacturers and technology firms. Significant partnerships, such as those with various industries for AI applications and collaborations with other companies in cloud computing, further bolster its revenue generation capabilities.

Baidu Financial Statement Overview

Summary

Baidu demonstrates strong financial recovery with robust revenue growth and improved margins. The balance sheet is solid with manageable leverage and a strong equity base. However, cash flow generation has decreased, indicating reliance on operating performance for cash generation.

Income Statement

Baidu's income statement shows robust performance with a strong TTM gross profit margin of 49.05% and a net profit margin of 19.41%. The company has demonstrated a healthy revenue growth trajectory, with a notable recovery from previous losses, as seen in the EBIT margin turning positive. This indicates improved operational efficiency. However, the gross profit margin slightly decreased compared to the previous year, which might suggest rising costs or competitive pricing pressure.

Balance Sheet

The balance sheet reflects a solid financial position, with a debt-to-equity ratio of 0.38, indicating moderate leverage. The equity ratio stands at 59.42%, showcasing stability and a strong equity base. Although there is a slight increase in total debt, the company's equity growth keeps the leverage at manageable levels. Return on equity improved significantly to 9.65%, aligning with the company's profitability recovery.

Cash Flow

Baidu's cash flow statement reveals some challenges, with a lower free cash flow generation compared to previous periods, primarily due to reduced operating cash flow. The operating cash flow to net income ratio of 0.35 suggests efficient conversion of profits into cash but indicates a decrease from prior periods. The free cash flow to net income ratio of 0.06 highlights a reliance on operating performance for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.85B	133.13B	134.60B	123.67B	124.49B	107.07B
Gross Profit	62.59B	67.02B	69.57B	59.74B	60.18B	51.92B
EBITDA	34.64B	35.95B	36.53B	30.70B	27.12B	32.87B
Net Income	27.86B	23.76B	20.32B	7.56B	10.23B	22.47B
Balance Sheet
Total Assets	450.57B	427.78B	406.76B	390.97B	380.03B	332.71B
Cash, Cash Equivalents and Short-Term Investments	123.87B	127.44B	193.90B	174.00B	180.09B	162.18B
Total Debt	91.84B	79.32B	84.59B	91.35B	91.51B	82.59B
Total Liabilities	152.66B	144.17B	144.15B	153.17B	156.08B	140.87B
Stockholders Equity	275.06B	263.62B	243.63B	223.48B	211.46B	182.70B
Cash Flow
Free Cash Flow	-10.92B	13.10B	25.32B	17.78B	8.88B	18.87B
Operating Cash Flow	-243.00M	21.23B	36.62B	26.17B	20.12B	24.20B
Investing Cash Flow	-29.35B	-8.55B	-50.40B	-3.94B	-31.44B	-27.55B
Financing Cash Flow	4.28B	-13.76B	-14.16B	-6.39B	23.40B	5.67B

Baidu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIDU, the sentiment is Positive. The current price of 142 is above the 20-day moving average (MA) of 127.33, above the 50-day MA of 104.98, and above the 200-day MA of 92.26, indicating a bullish trend. The MACD of 10.26 indicates Negative momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 78.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIDU.

Baidu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOG	83 Outperform	$2.98T	26.25	34.83%	0.33%	13.19%	34.51%
GOOGL	79 Outperform	$2.97T	26.09	34.83%	0.33%	13.19%	34.51%
TME	79 Outperform	$33.40B	25.03	14.07%	0.79%	10.66%	84.89%
ATHM	77 Outperform	$3.60B	16.83	6.05%	6.05%	-7.06%	-20.71%
BIDU	76 Outperform	$47.08B	12.88	10.33%	―	-1.32%	42.56%
META	76 Outperform	$1.83T	26.33	40.65%	0.29%	19.38%	40.62%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Baidu Corporate Events

Baidu Completes CNY4.4 Billion Senior Notes Offering

On September 15, 2025, Baidu announced the completion of a CNY4.4 billion offering of senior unsecured notes due 2029, which were sold in offshore transactions to non-U.S. persons. The proceeds will be used for general corporate purposes, including debt repayment and interest payments. The notes are expected to be listed on the Hong Kong Stock Exchange on September 16, 2025, potentially enhancing Baidu’s financial flexibility and market presence.

Baidu Reports Strong Q2 2025 Growth Driven by AI Initiatives

On August 20, 2025, Baidu announced its unaudited financial results for the second quarter ending June 30, 2025. The company reported robust growth in its AI Cloud business, which helped offset pressures in its online marketing segment. Baidu’s AI initiatives led to a significant increase in non-online marketing revenue, surpassing RMB 10 billion for the first time with a 34% year-over-year growth. The company is focused on long-term value creation through AI investments, including the global expansion of its Apollo Go robotaxi service. Despite challenges, Baidu’s strategic priorities are expected to drive substantial long-term value.