Baidu (NASDAQ:BIDU) Shares Gap Down – Should You Sell?

Baidu, Inc. (NASDAQ:BIDU) gapped down prior to trading on Monday . The stock had previously closed at $150.30, but opened at $144.67. Baidu shares last traded at $145.4020, with a volume of 1,757,772 shares changing hands.

More Baidu News

Here are the key news stories impacting Baidu this week:

• Positive Sentiment: Management confidentially filed for a separate listing of Kunlunxin, Baidu’s AI chip unit — MarketBeat argues the spin-off can unlock a major re‑rating by revealing a standalone value for the chip business, cutting conglomerate discount, and improving Baidu Core margins because Kunlunxin can raise its own capital. Why Baidu’s Quiet Spin-Off Could Unlock a Major Re-Rating
• Positive Sentiment: Reports say Kunlunxin is preparing a Hong Kong IPO targeting roughly $2bn; an IPO would create an explicit market value for the chip unit while Baidu plans to retain a controlling stake, preserving upside for BIDU shareholders. This is being framed as strategically important given China’s demand for domestic AI silicon. Baidu’s AI Chip Unit Eyes Hong Kong IPO
• Positive Sentiment: Sell‑side analysts have raised targets and reiterated buys after the spin‑off news (Jefferies raised its target to $181; Nomura to $178; JPMorgan also more constructive), adding momentum to the rally and signaling upside expectations from the street. Jefferies Upgrades Outlook on Baidu
• Neutral Sentiment: Valuation pieces (Yahoo Finance) analyze the sum‑of‑the‑parts case: Kunlunxin’s listing and Baidu’s cash reserves improve capital efficiency and EPS prospects, but execution, competition, and margin dynamics will determine whether the market fully assigns incremental value. Assessing Baidu Valuation After Kunlunxin Spin Off Plan
• Negative Sentiment: An investor law‑firm inquiry (Pomerantz) was announced, which could signal potential litigation risk and create headline volatility; investors should monitor developments for any material disclosures. Pomerantz Investigates Claims on Behalf of Baidu Investors
• Negative Sentiment: Some headlines noted recent intraday weakness and volatility amid broader market moves — short‑term trading noise could offset parts of the rally even as the spin‑off thesis plays out. Baidu Stock Sinks as Market Gains

Analysts Set New Price Targets

BIDU has been the subject of a number of recent research reports. The Goldman Sachs Group boosted their target price on shares of Baidu from $154.00 to $155.00 and gave the company a “buy” rating in a research report on Wednesday, November 19th. Bank of America raised their target price on shares of Baidu from $100.00 to $151.00 and gave the stock a “buy” rating in a report on Wednesday, November 19th. Daiwa Capital Markets set a $160.00 price target on Baidu and gave the company a “buy” rating in a research note on Tuesday, October 14th. Jefferies Financial Group raised their price objective on Baidu from $159.00 to $181.00 and gave the stock a “buy” rating in a research note on Friday, January 2nd. Finally, Susquehanna reiterated a “neutral” rating and set a $110.00 target price on shares of Baidu in a research report on Monday, November 24th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $149.56.

Baidu Stock Performance

The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.91 and a current ratio of 1.91. The stock has a market cap of $50.72 billion, a price-to-earnings ratio of 48.77 and a beta of 0.30. The stock has a fifty day simple moving average of $124.40 and a two-hundred day simple moving average of $111.50.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its holdings in shares of Baidu by 28.3% during the 1st quarter. Royal Bank of Canada now owns 160,713 shares of the information services provider’s stock valued at $14,791,000 after purchasing an additional 35,479 shares during the last quarter. Integrated Wealth Concepts LLC grew its stake in shares of Baidu by 28.0% during the first quarter. Integrated Wealth Concepts LLC now owns 7,787 shares of the information services provider’s stock worth $717,000 after buying an additional 1,705 shares during the last quarter. NewEdge Advisors LLC increased its holdings in shares of Baidu by 39,363.0% during the first quarter. NewEdge Advisors LLC now owns 21,310 shares of the information services provider’s stock worth $1,961,000 after buying an additional 21,256 shares in the last quarter. Empowered Funds LLC bought a new position in shares of Baidu in the 1st quarter valued at $334,000. Finally, Integrity Alliance LLC. acquired a new stake in shares of Baidu during the 1st quarter valued at $247,000.

Baidu Company Profile

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.