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Analysts Downgrade Baidu Amid Disappointing Earnings; Stock Tumbles

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Analysts Downgrade Baidu Amid Disappointing Earnings; Stock Tumbles
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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

DateFirmActionFromTo
Apr 2017BenchmarkInitiates Coverage OnBuy
Mar 2017BarclaysInitiates Coverage OnEqual-Weight
Jan 2017BernsteinInitiates Coverage OnUnderperform

View More Analyst Ratings for BIDU
View the Latest Analyst Ratings

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