Baidu (BIDU)

Re: Baidu (BIDU)

Postby winston » Tue May 05, 2015 8:16 pm

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May 3, 2015

Why Jefferies And CICC Downgraded Baidu By Shuli Ren

I would characterize Baidu‘s (BIDU) March quarter earnings as a non-event.

Baidu’s revenue rose 34%, missing slightly consensus estimates, but its net income slightly beat.

Baidu’s management expects revenue in the second quarter to rise by 38% (at midpoint), just shy of the 39% consensus estimate. The company expects to continue investing aggressively in new growth areas such as offline-to-online (O2O) initiatives.

But investors were losing patience, sending the shares down 8.6% on Thursday after the earnings. Baidu recovered only 1.1% on Friday. After all, Baidu’s core search business is slowing down.

What are the Wall Street analysts saying? After flipping through half a dozen reports this morning, I find Jefferies most interesting.

Analyst Cynthia Meng, Karen Chan and Shawn Zhou downgraded this stock to Hold with a new $196 price target. Baidu closed at $202.47 on Friday.

Baidu is betting on O2O as a new growth engine. But the fact that it does not own a viable mobile payment solution limits its ability to monetize on O2O, wrote the analysts:

Despite recurring investment, closing the loop of O2O transactions and driving monetization will prove challenging for Baidu without a strong payment tool, in our view. Baidu Wallet currently only has 26mn connected accounts, compared to 119mn Weixin Payment MAU and 190mn Alipay MAU.

Based on our channel checks, local SME merchants on Baidu Connect are not typical keyword search bidders. Public subscription accounts on Weixin and Alibaba, as well as local lifestyle service platforms such as Dianping and Meituan are better positioned to capture users and advertising growth in this respect.

In addition, we view Tencent public subscription accounts and Alipay public accounts (under service window tab) as potential strong competitors to Baidu in O2O.

Tencent Holdings (700.HK/TCEHY) and Alibaba Group (BABA) dominate China’s mobile e-payment market.

Meanwhile, CICC‘s Haofei Chen and Yue Wu also downgraded Baidu to Hold, saying that Baidu can no longer benefit from fierce competition among online verticals. For instance, last month, China’s Craigslist 58.com (WUBA) merged with competitor Ganji. The new merged company “clearly stated that they will cut their sales & marketing expenses”, a large part being online advertising dollars to Baidu. CICC’s analysts also mentioned that Baidu’s “O2O transformation is not running smoothly.”

Elsewhere, we have Nomura Securities tweaking down their price target from $243 to $240, Deutsche Bank tweaking down from $245 to $239, and Piper Jefferies from $231 to $230, all non-events.

Source: Barron's Asia
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Re: Baidu (BIDU)

Postby winston » Thu May 21, 2015 4:37 pm

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Baidu's 1Q revenues came in at USD 2bn (up 34% y/y), roughly in line with the street, but delivered an EPS beat of CNY 7.58, which is 5% above Bloomberg consensus.

Better profitability was mainly due to lower selling, general, and administrative (SG&A) costs.

Management reported active online marketing customer growth of 17.5% to 524,000.

Further highlights include the strong traction of its new food delivery and movie ticket O2O services, which are boosting Baidu Wallet, attracting 26m accounts that use its system.

Baidu Connect, which supports O2O applications for existing clients, also grew to 700,000 accounts.

Management guided 2Q revenue growth of 36–40% which, though conservative, suggests no major downside surprise.

We are comfortable with the current growth progress of Baidu's new O2O ventures and view current valuations as attractive.

Source: UBS
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Re: Baidu (BIDU)

Postby winston » Wed Jul 29, 2015 8:57 pm

"China's Google" plummets… Baidu shares are down nearly 30% in 2015.
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Re: Baidu (BIDU)

Postby winston » Thu Oct 22, 2015 7:58 am

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Tech Stocks Growing Faster Than AAPL: Baidu Inc (ADR) (BIDU)

Year Annualized Revenue Growth Rate: 50.1%
2015 Expected Revenue Growth: 36.1%
2016 Expected Revenue Growth: 31.7%

Baidu (BIDU) is often considered the Chinese Google, as it’s the leader of both PC and mobile search in the country. Like Google, Baidu has improved its monetization methods via advertising while also finding explosive growth from the surge of Chinese internet users over the last five years.

Also, Baidu has expanded into other businesses such as online video, online travel, and mobile operating systems. These things will help Baidu keep its growth intact long-term. And while China’s economic growth has slowed, it’s still growing at a healthy pace.

With 30%-plus revenue growth expected in the next two years, Baidu is cruising past Apple. And after losing about a third of its stock value this year, BIDU stock trades at less than 4 times next year’s earnings — profits that are expected to leap 32% after a pullback in the current year.

That makes it potentially one of the best bargain tech stocks around.

Source: Investor Place
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Re: Baidu (BIDU)

Postby winston » Tue Oct 27, 2015 6:57 pm

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Baidu: Growth Intact But Margin Is The Wild Card, Morgan Stanley Cuts Target

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ts-target/
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Re: Baidu (BIDU)

Postby winston » Fri Feb 05, 2016 11:57 am

Baidu: Watch Out For O2O; Morgan Stanley Cuts Target

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ts-target/
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Re: Baidu (BIDU)

Postby winston » Fri Feb 05, 2016 11:57 am

Baidu: Watch Out For O2O; Morgan Stanley Cuts Target

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ts-target/
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Re: Baidu (BIDU)

Postby winston » Mon Feb 08, 2016 8:04 am

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Baidu Spending In Its ‘Online-To-Offline’ Push Will Be Focus In Q4

by MICHELE CHANDLER

“Who is the potential threat for Baidu on mobile? We believe it’s Tencent, rather than any of the existing search engines,” wrote Nomura analyst Jialong Shi in that industry note.

“Baidu is trying to penetrate into mobile apps, but so far progress has been slow.

Based on our checks with industry experts, the challenges for in-app search mainly lie in two aspects — immature technology and reluctance of app developers.”


http://www.investors.com/news/technolog ... &ven=yahoo
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Re: Baidu (BIDU)

Postby winston » Thu Feb 25, 2016 10:13 am

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Baidu: MSCI Inclusion, iQiyi Buyout; Deutsche Raises To Buy

By Shuli Ren

Deutsche now values Baidu at $220 price target, implying another 35% upside.

The bank values Baidu’s profitable core search business at 1 time price-to-earnings to growth ratio (PEG),


Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... es-to-buy/
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Re: Baidu (BIDU)

Postby winston » Fri Feb 26, 2016 7:54 am

China's Baidu reports 33 percent jump in quarterly revenue

Mobile accounts for about two-thirds of Baidu's search traffic in a country that has more mobile than PC users.




Source: Reuters

http://www.reuters.com/article/us-baidu ... nologyNews
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