Baidu Inc logo

Baidu Inc(BIDU)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$80.5
10/20/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for BIDU

10/20/2026: BIDU (1-star) is currently NOT-A-BUY. Pass it for now.

Baidu Inc is a major Chinese technology company primarily known for its leading search engine and its strategic shift toward artificial intelligence and cloud computing. The company benefits from a solid search foundation while investing heavily in autonomous driving and generative AI, such as its Ernie Bot. While these technologies offer significant long-term growth potential, Baidu faces stiff competition for advertising revenue and regulatory pressures common to the Chinese tech sector. The stock may appeal to growth investors willing to tolerate higher volatility in exchange for potential AI-driven upside. Investors should monitor the company's success in monetizing its AI investments and the evolving landscape of Chinese internet regulation.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fit while signal remains positiveBaidu's heavy pivot to generative AI and cloud infrastructure offers long-term growth potential.
Momentum investorMixed fitThe stock often reacts to regulatory developments and AI technology cycles, requiring positive signal momentum.
Value investorStrong fitThe stock often trades at low valuation multiples relative to historical averages due to China-risk discounts.
Dividend investorWeak fitBaidu does not currently provide a consistent dividend income stream.
Low-risk investorWeak fitExposure to China's regulatory environment and high-beta tech volatility makes this unsuitable for conservative portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is sensitive to both global market sentiment and China-specific policy changes.
Valuation riskMediumWhile multiples appear low, they may reflect structural risks inherent in the Chinese market.
Competition risk (AI and cloud competition)HighIntense competition from domestic giants limits pricing power in cloud and advertising.
Business qualityMedium / highBaidu possesses strong technical IP but faces challenges in scaling high-margin, consistent revenue.
Dividend incomeLow / noneInvestors should not expect income returns as the company prioritizes R&D reinvestment.
Execution riskMedium / highSuccessful integration of Ernie into mass-market products is critical for future revenue growth.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -9.96%
Avg. Invested days 27
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/20/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
BIDU receives a 3-star rating, supported by strong analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
BIDU has moderate overall fundamentals (3 stars), with moderate financial health, soft growth momentum, and moderate ownership. In FY2025 versus FY2024, growth and ownership metrics are mixed: negative earnings growth (-76.5%), weak cash generation (FCF margin -12.7%), slightly negative revenue growth (-3.0%).

Financial Health Rating

★★★★★
BIDU's financial health is supported by solid cash strength, including free-cash-flow generation of $-16.4B (-12.7% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
BIDU's growth profile is soft, with the least-weak measure being revenue growth at -3.0% FY2025 versus FY2024. By comparison, while earnings growth (-76.5%, negative) and free-cash-flow growth (-225.4%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 23.3% (moderate) and 99.6% of outstanding shares are publicly tradable (strong). Insider ownership of 2.93% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

PRIMECAP Management Company 3.23%
Morgan Stanley - Brokerage Accounts 1.91%
UBS Group AG 0.89%
Robeco Institutional Asset Management BV 0.44%
Bank of America Corp 0.42%

Unit Economics (Per $1K Revenue)

★★★★★
BIDU generates approximately $439 of gross profit, $80 of operating income, and $-127 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Negative free cash flow explains the 2-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 18.75%

Quantitative Style Profile

★★★★★
BIDU has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 27.16B USD
Price to earnings Ratio -
1Y Target Price 145.14
Price to earnings Ratio -
1Y Target Price 145.14
Volume (30-day avg) 2.3M shares
Beta 0.58
52 Weeks Range 79.65 - 165.30
Updated Date 10/20/2026
52 Weeks Range 79.65 - 165.30
Updated Date 10/20/2026
Dividends yield (FY) -
Basic EPS (TTM) -2.24

How Company Makes Money

Business areaWhat it includesRetail investor read
Online Marketing ServicesSearch and display ads on Baidu's properties.The primary cash cow, though growth is under pressure from competing video-centric apps.
Baidu CloudEnterprise cloud services, AI-as-a-Service, and data storage.A key growth pillar that benefits from the broader shift to digital enterprise infrastructure.
Geography (China)Nearly all revenue is derived from the Chinese domestic market.Highly sensitive to Chinese macroeconomic performance and local regulatory trends.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 19.19
Enterprise Value 22.82B
Price to Sales(TTM) 0.21
Enterprise Value 22.82B
Price to Sales(TTM) 0.21
Enterprise Value to Revenue 1.22
Enterprise Value to EBITDA 48.39
Shares Outstanding 274.92M
Shares Floating 273.83M
Shares Outstanding 274.92M
Shares Floating 273.83M
Percent Insiders 2.93
Percent Institutions 23.26

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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