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Analyst Highlights Decline in Baidu's Search Share, Strength in App Store‏

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In a report published Friday, T.H. Capital analyst Tian Hou examined October through December 2013 operating data highlights of Baidu (NASDAQ: BIDU) noting strong activities in app store and mobile product adoption but decline in search share.

Hou reported that there was a slight decrease in search query market share of Baidu's search engine from 64.6% page views (PV) at the end of September to 61.9% by December 25. This amount still crushed Qihoo 360 Technology (NYSE: QIHU) of 20.5% at the end of September to 23.1% by December 25th.

T.H. Capital noted the strong activities in Baidu's mobile app store including 91 Wireless with 14.9 app downloads. This amount is up 61.2% from 9.3 billion in the 2013 third quarter. In addition, “From 10/01/2013- 12/25/2013, iQiyi's average actively viewed content could be at 5,225, a 6.2% Q/Q decline from 5,567 in 3Q13 (Figure 3). The decrease could mainly come from net decreases in 189 titles of TV dramas and 268 cartoon titles, offset by 9 new variety shows and 106 new movie titles.”

The analyst continued, reporting that the number of newly released hit TV dramas QTD in 4Q13 could hit 30 versus 39 in 3Q13. During the October to December range, the average daily view times for newly released hit TV dramas may increase dramatically from 34 milion in 3Q13 to 36 million.

T.H. Capital maintained a Buy rating and $94 price target on Baidu.

Shares of Baidu closed at $179.99 and is currently trading down 2.38%.

Latest Ratings for BIDU

DateFirmActionFromTo
Jul 2014BNP ParibasUpgradesReduceBuy
Jul 2014HSBCMaintainsOverweight
Jul 2014UBSMaintainsNeutral

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Posted-In: T.H. Capital Tian HouAnalyst Color News Analyst Ratings

 

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