- Baidu‘s fourth-quarter revenue surpassed expectations, reaching 34.12 billion yuan against an estimate of 33.39 billion yuan.
- Revenue from Baidu Core was 27.7 billion yuan, higher than the estimated 26.75 billion yuan.
- IQIYI, Baidu‘s streaming service, reported revenue of 6.6 billion yuan, slightly below the estimate of 6.84 billion yuan.
- The adjusted profit per American depositary receipt was 19.18 yuan, significantly above the estimate of 14.13 yuan.
- Adjusted operating profit came in at 5.05 billion yuan, outperforming the estimate of 4.89 billion yuan.
- Adjusted EBITDA was 6.95 billion yuan, which was below the anticipated 7.47 billion yuan.
- The number of monthly active users reached 679 million, falling short of the estimate of 690.82 million.
- Baidu has cash and other resources amounting to 139.1 billion yuan.
- The company is optimistic about its AI investments bringing more significant results in 2025.
- Analyst recommendations include 26 buys, 14 holds, and 1 sell.
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Baidu on Smartkarma
Analyst coverage on Baidu by independent analysts on Smartkarma reveals a mix of sentiments towards the company. Ming Lu‘s report highlights a 51% YoY increase in NEV retail volume in November and discusses workforce layoffs at Baidu‘s subsidiary Jiyue Auto and Hisense. Baptista Research remains bullish on Baidu, citing stable revenues for Baidu Core amidst a complex financial performance in Q3 2024. Conversely, Ying Pan‘s bearish sentiment warns of declining ad revenue and unsustainable margin improvements in Baidu, with a maintained SELL rating and a lowered target price to US$78. Stan Zhao‘s analysis concludes that Baidu‘s robotaxi Apollo faces higher costs than Tesla’s Cybercab, emphasizing the need for cost reductions for Baidu to compete effectively by 2026.
A look at Baidu Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Baidu‘s long-term outlook appears promising overall. The company scores high on value, indicating that it may be undervalued in terms of its market price compared to its intrinsic value. This suggests potential for future growth in its stock price. Additionally, Baidu scores well in growth and resilience, indicating that it has strong potential for long-term growth and the ability to withstand market challenges. However, the company scores low on dividend and momentum, suggesting that it may not be suitable for income-focused investors or those looking for stocks with strong short-term price momentum.
Baidu, Inc. is primarily known for operating an Internet search engine and offers a variety of services including algorithmic search, enterprise search, news, and image searches. The company also provides voice assistance, online storage, and navigation services for clients worldwide. With its high value score and strong growth and resilience ratings, Baidu seems well-positioned to continue its expansion in the internet services sector and potentially deliver value to investors over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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