
Baidu (BIDU) Stock Forecast & Price Target
Baidu (BIDU) Analyst Ratings
Bulls say
Baidu's core revenue demonstrated modest year-on-year growth of 1% in 2023, with a significant boost in AI Cloud revenue growth accelerating to 26% year-on-year in the fourth quarter, indicative of increasing demand driven by AI technologies. The company's achievements in achieving 100% driverless coverage nationwide and its full-stack service offerings position it advantageously in the autonomous driving market, enhancing its competitive edge and appeal to mid-tier enterprises. Additionally, Baidu plans to accelerate its buyback program, moving from $1 billion in fiscal year 2024 to a more aggressive commitment in fiscal year 2025, reflecting a strong focus on shareholder returns alongside its growth initiatives.
Bears say
Baidu's recent financial performance has raised concerns, particularly with a projected 4Q cloud growth rate of only 13% year-over-year and a lowered operating profit margin forecast from 21% to 17%, reflecting challenges such as decreasing high-margin ad revenue and one-off costs. The company's core advertising business has not only experienced a decline of 6.7% year-over-year in 4Q, but it also faces ongoing pressure due to ineffective monetization of technological innovations amidst a challenging macroeconomic environment. Additionally, the significant drop in the EBITDA margin for Baidu's core business, which fell by 6 percentage points to 24%, highlights deeper issues within its revenue-generating segments, suggesting a prolonged period of financial strain ahead.
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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