Do you want to learn about the Baidu company and its stocks? Let us help you understand the Baidu stock price. Continue reading to know more about the value of one Baidu share and how its price may fluctuate in the coming time.
The stock market is unstable because of multiple reasons, and investors are always looking for profitable investments. The Baidu stock has a lot of potential to rise soon because of the company’s foray into AI and other technologies and is worth buying. Read further to know everything about Baidu stock and how to invest or trade them.
Based in Haidian, Beijing, Baidu is a multinational tech firm providing Internet services, AI, and other products. The company was started in 2000 by Robin Li and has now become one of the biggest and most popular internet and IT firms globally. The Baidu search engine is ranked by Alexa Internet as the 4th biggest website worldwide.
In addition to the Chinese language search engine, Baidu offers various other services. Baidu Wangpan, Baidu Maps, Tieba, Baike, etc., are some of the services offered by the company. The search engine service is the most-used in China while it ranks no. 2 worldwide, ranking just behind industry leader Google.
For services and products outside China, Baidu’s GBU or Global Business Unit is responsible. Some of the products in this portfolio include the Simeji keyboard, Facemoji keyboard, popIn for content recommendation, AR network OmniAR, advertisement platform MediaGo, etc.
Baidu has two major segments, namely the Core and the iQIYI segment. The core segment offers marketing services, search-engine, keyword-based search, and products from Baidu’s Artificial Intelligence service. The iQIYI service can be compared to YouTube as it offers online original content curated by Baidu’s partners and professional producers.
Stock prices are never constant and change daily. There are many factors that determine the price change of stock, primarily the demand and supply at a particular moment in the market. A range of technical factors, fundamental factors, and market sentiments drive the price change of stocks.
Baidu stocks are listed on the US NASDAQ stock market as BIDU and have been there since 2005. At the beginning of September, its value was $169.8 at high and $158.58 low. The all time high price of the Baidu stock was $339.9 on February 19, 2021.
It’s also worth noting that there has been a single Baidu stock split in the history of the title. It took place in May 2010. The split was 10 for 1, meaning that each share was divided into 10 shares in this Baidu stock split.
As you can see on the monthly chart of Baidu stock , the stock has experienced a generally upward trend since its listing in 2005.
Notably, between the beginning of 2009 and the middle of 2011, Baidu stock went from around $13 to a peak of $165, an increase of 1170% in two and a half years.
Baidu stock then posted a two-year correction following this initial record high that brought it down to a low around $80 in April 2013. That correction then gave way to a powerful bull run that took Baidu stock to a peak of over 250 in November 2014, up over 200% in a year and a half.
However, less than a year later, Baidu tested the $100 support in August 2015, before stabilizing around a pivot around $170. The stock then rallied again in July 2017, rising from $180 to $285 in one year. Then, from May 2018 to March 2020, Baidu plunged from $285 to $80, marking its low in the covid-19 pandemic debut.
Then, Baidu stock posted a 340% rebound in one year to reach an all-time high of $350 in February 2021. Since then, the stock has been struggling, currently around $160, but maintains a positive long-term trend.
You must take a look at various factors before you decide on buying or selling Baidu shares. Consider the company fundamentals, share price history, price movements, market trends, and stock forecast or predictions.
Baidu’s primary source of revenue is internet advertising, an area where it is among the leaders in China. Indeed, Baidu is often referred to as the Chinese Google. However, Baidu’s dominant position in this sector means that its growth potential in terms of market share gains is becoming more limited.
Baidu has already started to address this by developing businesses outside of advertising. For example, in Q1, Baidu’s non-advertising revenue accounted for 15% of revenue, up 70% year-over-year. This growth comes mainly from its AI Cloud business, which is the 4th largest player in the Chinese cloud market. Finally, it’s worth noting that Baidu CEO Robin Li recently stated that “non-advertising revenue could possibly exceed advertising revenue within Baidu Core in the next three years.”
In addition to being a bet on Internet advertising and cloud computing, Baidu stock is also an investment in electric vehicles. The company has in fact launched a new joint venture to develop driverless EVs in China.
Thus, Baidu is also a stock on the radar of investors who want to bet on the explosion of electric vehicles, which makes it a highly sought after stock.
Second, it launched a new joint venture to develop driverless EVs in China, making it a target in the recent buying frenzy in EV-related stocks. Lastly, Baidu believes it can generate fresh revenue growth with its upcoming takeover of the live streaming platform YY Live.
Finally, one of the most important arguments encouraging investors to bet on Baidu stock is that it is obviously an unfairly punished stock by the market. Since its record high in February, Baidu stock has seen its value more than halved. Yet the financial results are satisfactory, and the future prospects are bright.
All of this suggests that Baidu stock is currently undervalued in many ways, and that the current time and price may be ideal for buying.
Baidu’s primary business model is based on online advertising and marketing services. Almost $11.24 billion was raised by Baidu through online marketing, while other services contributed to a revenue of $1.8 billion. Hence almost the entire revenue is generated through marketing, especially the P4P, pay-for-performance services.
Baidu’s customers will make investments and pay them only if it is possible to generate sales and profits. If Baidu does not share their web pages effectively, it can lose customers and suffer losses. The P4P service is auction-based, and customers need to place their bids for placement of their sponsored or paid links. If there are issues with the bidding mechanism or problems with the data, Baidu can lose users.
The decline in web traffic and difficulty in attracting new users can harm Baidu’s business model. It is the Core segment of Baidu that offers marketing services and accounts for the majority of the revenue. The iQIYI platform works like YouTube and offers original content to users. It accounts for 15-20% of the company’s revenue.
Baidu has never declared any dividends and does not intend to pay dividends anytime soon on ordinary shares. The company wants to use all earnings for expanding and operating its business. The company has total control over the distribution of Baidu stock dividend and if they decide to pay dividends in the future, it will be based on future earnings and operations.
Here are some Baidu stock forecasts and predictions.
The weekly chart shows just how bad 2021 has been for Baidu stock so far.
However, we can also see that the stock has taken support from the $135-150 support area to start a rebound, which has already allowed it to move back above the 100-week moving average, a cross that is a long-term bullish signal.
As far as potential bullish targets are concerned, the psychological threshold of $200 is an obvious target, before chart resistance around $270, the psychological threshold of $300, and the record high of $350.
A poll among 42 analysts concludes that this is the right time to buy Baidu stock. The analysis has been similar for the past few months. In the month of September, 32 analysts recommended to buy stock in Baidu while 5 of them recommended to hold the shares.
None of the analysts predicted the Baidu stock to underperform while 2 of them recommended selling the stock.
Baidu’s revenue for the last quarter ended August 12, 2021, reached $31.35 billion, up 20% year-on-year from the consensus forecast of $30.99 billion. Earnings per share reached $15.41, up 44% year-on-year from the consensus estimate of $13.09.
For the next quarter, analysts expect Baidu’s growth to continue, anticipating revenue of $32.28 billion, up 22% year over year. But consider the fact that Baidu’s revenue has exceeded expectations for the last 9 consecutive quarters. For EPS, it’s been 20 quarters of Baidu doing better than analysts expect. So there is a good chance that the next results will once again bring some very good surprises.
If you are interested in investing or trading Baidu shares, you need to create a trading account with ZFX.
ZFX allows users to trade over 35 share CFDs listed on the American stock market. You can first make a demo account to test your strategies before moving onto a live trading account on ZFX. ZFX’s MT4 platform is available for Windows, Mac, and mobile devices.
Take advantage of the rise and fall in the stock market and leverage share CFDs to make maximum profits on your investment. ZFX will make trading simple for you, and you need to register and set up a trading account to get started.
At ZFX, you can use the MT4 platform for buying or selling Baidu Hong Kong stock. Set up your account first to start trading. It is a simple and quick process.
Here is a step-by-step explanation of how to create a new trading account at ZFX.
Click on Open Live Account, and you will be redirected to a registration form. Enter some basic information here, including your name, phone number, e-mail, etc. Next, you will receive a verification code, and an automatic password for your account. After filling in all the details, you can proceed to the next step.
Your account will be up and running by now, and all you have to do is add funds to your account to start trading in Baidu stocks. Click on the Deposit button and then select one of the available payment methods to deposit money.
After depositing money into your account, you need to download the MT4 platform on your device to begin buying and selling Baidu stock.
Take and hold your position in the share market and make handsome profits on your investment.
Baidu is one of the biggest names in the internet market and advertising sector, with a huge base in China. After Google, it is the most used search engine worldwide and has even entered the Artificial Intelligence industry. All information related to Baidu stock price history, technical and analytical forecast, stock dividends, etc., have been discussed above.
If you are interested in trading Baidu stocks, ZFX offers the perfect platform for you. You just need to register and download the MT4 platform to begin trading. The Baidu share is a good buy now because most forecasts show that it will rise in the near future, and you can make profits.