Analysts Downgrade Baidu Amid Disappointing Earnings; Stock Tumbles
Baidu Inc (NASDAQ: BIDU), a Chinese-language Internet search provider, reported a mixed earnings report on Monday.
Baidu reported revenues of $2.67 billion, a 38.3 percent year-over-year sales growth, and earnings per share of $1.81, above the expected $1.80 per share. The search company also highlighted that its monthly active users for Q2 were 629 million, representing year-over-year growth of 24 percent.
Baidu expects revenue for Q3 in the range of $2.93-$3 billion, slightly down from analyst expectations of $3.03 billion.
Shares of the stock dwindled a bit north of 4 percent on Monday. Shares were down another 13 percent in the pre-market session on Tuesday.
Here is what analysts had to say early Tuesday:
- KeyBanc (Associated with Pacific Crest): Downgraded the stock from Overweight to Sector Weight. Analyst Cheng Cheng specified that spending could rise and monetization could be low for Baidu’s future.
- Brean Capital: Downgraded from Buy to Hold. Analyst Fawne Jiang expressed uncertainties about earnings ahead.
SUMMARY: 2 downgrades; 1 Sector Weight, 1 Hold rating.
Latest Ratings for BIDU
|Jan 2017||Bernstein||Initiates Coverage On||Underperform|
|Jan 2017||Stifel Nicolaus||Upgrades||Hold||Buy|
|Jan 2017||JP Morgan||Upgrades||Underweight||Neutral|
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