Baidu down over 4%

Baidu down over 4%

Baidu Inc. (BIDU) experienced a significant downturn in its stock price, closing at $86.95 on July 16, 2025, marking a -1.68% decline from the previous trading session. This drop was more pronounced than the broader market, where the S&P 500, Dow Jones, and tech-heavy Nasdaq all registered losses of 0.33%, 0.63%, and 0.22%, respectively [1].

The stock's performance over the past month has been relatively subdued, rising by only 0.72%, compared to the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 4.07%. This underperformance is likely due to upcoming earnings reports, which are projected to show a significant drop in earnings per share (EPS) and revenue [1].

Baidu Inc. is expected to report earnings per share (EPS) of $2.05 for the quarter, representing a 29.07% drop from the same period last year. Revenue is projected to be $4.61 billion, a 1.37% decrease from the year-ago quarter. Full-year Zacks Consensus Estimates predict earnings of $9.28 per share and revenue of $18.73 billion, indicating year-over-year changes of -11.87% and +1.28%, respectively [1].

Analysts have recently revised their estimates for Baidu Inc., reflecting the evolving nature of short-term business trends. The Zacks Rank, a quantitative model that incorporates these estimate changes, currently rates Baidu Inc. as a #4 (Sell) [1].

Valuation metrics indicate that Baidu Inc. is trading at a Forward P/E ratio of 9.53, which is a discount compared to the industry average of 20.25. The Internet - Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 149, placing it in the bottom 40% of all industries [1].

The recent partnership between Baidu Inc. and Uber Technologies (UBER) to deploy autonomous vehicles (AVs) in global markets may have contributed to the stock's decline. The partnership, announced on July 16, 2025, involves Baidu deploying thousands of its Apollo Go AVs on Uber's platform across multiple global markets outside of the U.S. and mainland China [2].

Despite the recent decline, Baidu Inc. continues to attract investor attention, with the stock being one of the most watched on Zacks.com. Investors should closely monitor the upcoming earnings reports and the progress of the Baidu-Uber partnership to gauge the stock's future performance [1, 2].

References:
[1] https://finance.yahoo.com/news/baidu-inc-bidu-falls-more-214502299.html
[2] https://finance.yahoo.com/quote/BIDU/news/