UPDATE: Stifel Nicolaus Downgrades Baidu to Hold on Mixed Q4 Results

Stifel Nicolaus downgraded Baidu

from Buy to Hold and removed the price target of $130.00. Stifel Nicolaus said, "We are downgrading the shares of Baidu from Buy to Hold as the company's financial model adjusts to a much higher level of investment spending behind the iQiyi online video business and mobile internet solutions, while at the same time we expect Qihoo (QIHU, $30.83, Buy) to become a stronger competitor in Baidu's core search business. We applaud Baidu's strategy of investing for the future, but we believe Baidu's shares will be range bound until margins stabilize and its investment programs begin to bear fruit." Baidu closed at $107.20 on Monday.