#3 - Baidu, Inc. (NASDAQ:BIDU)
Baidu, Inc. (NASDAQ: BIDU) - You’ll probably start to notice a theme. Baidu is China’s largest search engine provider, but they are rapidly branching out into other areas such as cloud computing, artificial intelligence (AI), maps, and security surrounding information technology. This is one of the reasons they’re considered the “Google” of China.
Currently, Baidu’s stock is facing some headwinds as the actual Google has announced plans to re-enter the Chinese market with a censored search engine. Although the launch will undoubtedly be delayed until the United States and China resolve their current trade dispute, and some analysts question Google’s enthusiasm about entering a crowded Chinese search engine space, the announcement alone sent shares of Baidu tumbling nearly 8 percent.
Still, analysts see a tremendous upside to Baidu stock. Consensus ratings label it a buy and project a 26% increase in the stock’s price target. Analysts also point out that Baidu’s position as the country’s leading search provider puts it in an ideal position as China’s online ad market continues to grow.
However, as we noted, Baidu has a reach that goes beyond search engine technology. The company recently announced a partnership with The Ford Motor Company to develop a line of smarter cars in China. The cars will feature a proprietary in-vehicle infotainment system called DuerOS highlighted by Baidu’s AI technology.
In early August, the company reported a 35% year-over-year increase in second-quarter profit to $3.18 a share. Analysts had expected profit to come in flat. At the same time, an increase in year-over-year revenue of 27.6%, to $3.93 billion beat analysts’ recommendations of $3.87 billion.
About Baidu
Baidu, Inc engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app.
Read More - Current Price
- $104.32
- Consensus Rating
- Buy
- Ratings Breakdown
- 15 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $171.64 (64.5% Upside)
