Baidu (NASDAQ:BIDU) Price Target Cut to $135.00 by Analysts at Morgan Stanley

Baidu (NASDAQ:BIDU) had its target price reduced by Morgan Stanley from $150.00 to $135.00 in a research note released on Friday,MarketScreener reports. They currently have an equal weight rating on the information services provider’s stock.

Other analysts also recently issued reports about the company. Deutsche Bank Aktiengesellschaft raised Baidu from a “hold” rating to a “buy” rating and set a $160.00 price objective for the company in a research report on Thursday, November 6th. Wall Street Zen upgraded shares of Baidu from a “sell” rating to a “hold” rating in a research note on Sunday, February 8th. China Renaissance upgraded Baidu from a “hold” rating to a “buy” rating and boosted their target price for the stock from $134.00 to $180.00 in a research note on Tuesday, February 3rd. Jefferies Financial Group upped their target price on Baidu from $159.00 to $181.00 and gave the company a “buy” rating in a research report on Friday, January 2nd. Finally, Citigroup restated a “buy” rating on shares of Baidu in a research report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $159.11.

Baidu Price Performance

Shares of NASDAQ BIDU traded down $0.71 during midday trading on Friday, hitting $124.44. The stock had a trading volume of 1,699,821 shares, compared to its average volume of 2,341,430. Baidu has a 1 year low of $74.71 and a 1 year high of $165.30. The company has a market capitalization of $42.99 billion, a PE ratio of 78.26 and a beta of 0.32. The stock has a 50 day simple moving average of $142.08 and a 200-day simple moving average of $126.08. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.23.

Hedge Funds Weigh In On Baidu

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. UMB Bank n.a. raised its stake in Baidu by 65.0% during the third quarter. UMB Bank n.a. now owns 340 shares of the information services provider’s stock valued at $45,000 after buying an additional 134 shares in the last quarter. Binnacle Investments Inc acquired a new position in Baidu during the 2nd quarter valued at about $29,000. Ameritas Advisory Services LLC raised its holdings in Baidu by 12,400.0% during the third quarter. Ameritas Advisory Services LLC now owns 375 shares of the information services provider’s stock worth $49,000 after purchasing an additional 372 shares in the last quarter. Brown Brothers Harriman & Co. boosted its position in shares of Baidu by 35.0% during the 4th quarter. Brown Brothers Harriman & Co. now owns 405 shares of the information services provider’s stock valued at $53,000 after purchasing an additional 105 shares in the last quarter. Finally, Winthrop Capital Management LLC acquired a new position in Baidu in the second quarter worth approximately $39,000.

Key Headlines Impacting Baidu

Here are the key news stories impacting Baidu this week:

• Positive Sentiment: Baidu announced a $5 billion share buyback and a first-ever dividend policy while reporting AI business revenue up ~48% YoY — capital return and fast AI growth support shareholder value and long‑term upside. Article Title
• Positive Sentiment: Cathie Wood’s ARK Invest bought into Baidu after the post‑earnings dip (nearly 98,000 shares, ~$12.2M) — a notable institutional vote of confidence in Baidu’s AI pivot. Article Title
• Positive Sentiment: EPS beat expectations on a per‑share basis despite year‑over‑year declines; management highlighted traction in AI Cloud and Apollo autonomous services, which helps justify longer‑term upside. Article Title
• Neutral Sentiment: Baidu released its full Q4/FY2025 results and the earnings‑call transcript — useful for digging into guidance, margin drivers and AI product cadence. (Review management commentary for signals on ad demand and cloud profitability.) Article Title
• Neutral Sentiment: Some outlets report Baidu topped revenue estimates for the quarter, driven by cloud/AI, but the topline still declined year‑over‑year — a mixed beat that leaves focus on sustainability of AI revenue. Article Title
• Negative Sentiment: Reported profit fell sharply in the quarter (various reports cite large year‑over‑year declines), heightening concerns that AI growth hasn’t yet offset legacy ad weakness. Article Title
• Negative Sentiment: Advertising revenue remains weak (reported ~4% revenue decline YoY), keeping near‑term top‑line pressure and limiting margin improvement. Article Title
• Negative Sentiment: Morgan Stanley cut its price target to $135 and moved to an equal‑weight stance, signaling less near‑term conviction from a major analyst. Article Title
• Negative Sentiment: Shares have been under selling pressure over multiple sessions after the print — market reaction suggests investors want clearer proof that AI growth can replace the legacy ad business. Article Title

About Baidu

Baidu, Inc, founded in 2000 and headquartered in Beijing, is a Chinese multinational technology company best known for operating one of China’s leading internet search engines. The company built its business around online search and related advertising services, providing search, content aggregation and targeted ad placements to consumers and marketers across China. Baidu went public on the NASDAQ in 2005 and has since diversified beyond search into a broader technology and AI-focused portfolio.

Core products and services include the Baidu search platform and mobile app, Baidu Maps and Baidu Baike (an online encyclopedia), along with digital content initiatives.