Baidu Stock Analysis 2025: Current Price $95.19 Amidst Market Challenges
Explore Baidu's latest earnings report and stock performance in 2025, impacted by economic slowdown, trade tensions, and competition in the Chinese tech sector.
Baidu, Inc. (BIDU), the leading Chinese technology powerhouse known for its expertise in internet services and artificial intelligence, is set to release its earnings report after market close on Monday, August 19, 2024. As of August, Baidu’s stock price is holding steady at approximately $95.19.
Historically, Baidu reached its peak intraday price of $284.22 during the week of May 18, 2018. Since then, the stock has experienced a significant decline of about 67%, hitting a multi-year low of $93.39 on August 15, 2024. Currently, Baidu shares closed last week at $96.70, marking a 39% decrease year-to-date and positioning the stock deep in bear market territory—58.8% below its 52-week high of $234.88 recorded on September 21, 2018.
Market analysts forecast Baidu’s earnings per share (EPS) to range between $0.92 and $1.03 for the upcoming report. The company continues to face headwinds from China’s economic slowdown and ongoing trade tensions with the United States, which have weighed heavily on its stock performance.
In May 2024, Baidu missed earnings expectations for the first time since going public in 2005. Additionally, Baidu is losing ground to competitors like NetEase, Inc. (NTES) in the gaming industry, which has contributed to its fall from the ranks of China's top five most valuable internet firms. Despite these challenges, Baidu's stock remains attractively valued with a price-to-earnings (P/E) ratio of 15.10, though it currently does not pay dividends, according to Macrotrends data.
The daily price chart reveals a "death cross" pattern formed on August 27, 2018, when Baidu’s 50-day moving average dropped below its 200-day moving average, signaling a bearish trend. This technical indicator preceded the stock’s slide to its 2019 low of $93.39. Presently, Baidu trades well below its semiannual, quarterly, and annual resistance levels of $149.36, $206.68, and $242.91 respectively, but remains just above its monthly pivot point for August at $95.19.
Looking at the weekly chart, Baidu’s stock is technically oversold, trading below its five-week modified moving average of $109.68 and significantly beneath its 200-week simple moving average, or "mean reversion" level, at $191.88. The slow stochastic oscillator reading dropped to 7.69 last week, down from 8.79 on August 9, indicating the stock is "too cheap to ignore" from a technical perspective.
Trading Strategy: Investors are advised to consider buying Baidu shares on dips toward the monthly pivot level of $95.19 and to trim holdings when the stock approaches the semiannual resistance level at $149.36.
Understanding Value and Risk Levels: These levels are derived from the last nine weekly, monthly, quarterly, semiannual, and annual closing prices, with adjustments made periodically to reflect current market conditions. Value levels represent potential buying opportunities during price weakness, while risky levels signal potential points to reduce exposure during price strength. Pivot points, which are breached value or risky levels, often act as magnets and are likely to be retested within their timeframe.
Utilizing the 12 x 3 x 3 Weekly Slow Stochastic Indicator: This momentum indicator analyzes the stock’s highs, lows, and closing prices over the past 12 weeks. The slow stochastic reading, which ranges from 0 to 100, helps identify overbought conditions above 80 and oversold conditions below 20. Readings under 10, as currently seen with Baidu, suggest the stock is undervalued and presents a potential buying opportunity. Conversely, readings above 90 may indicate an overinflated price bubble prone to correction.
Disclosure: The author holds no positions in Baidu or related stocks and does not intend to initiate any within the next 72 hours.
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