Morgan Stanley Issues Pessimistic Forecast for Baidu (NASDAQ:BIDU) Stock Price

Baidu (NASDAQ:BIDU) had its target price lowered by equities researchers at Morgan Stanley from $150.00 to $135.00 in a note issued to investors on Friday,MarketScreener reports. The brokerage currently has an “equal weight” rating on the information services provider’s stock. Morgan Stanley’s price objective indicates a potential upside of 7.47% from the stock’s previous close.

Other research analysts also recently issued research reports about the stock. Barclays boosted their price objective on shares of Baidu from $100.00 to $147.00 and gave the stock an “equal weight” rating in a report on Monday, January 26th. Wall Street Zen upgraded shares of Baidu from a “sell” rating to a “hold” rating in a research report on Sunday, February 8th. National Bank Financial raised Baidu to an “outperform” rating in a report on Monday, November 24th. Bank of America upped their price target on Baidu from $100.00 to $151.00 and gave the company a “buy” rating in a research report on Wednesday, November 19th. Finally, Benchmark reiterated a “buy” rating on shares of Baidu in a research note on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Baidu presently has an average rating of “Moderate Buy” and an average price target of $159.11.

Baidu Trading Up 0.4%

NASDAQ:BIDU opened at $125.61 on Friday. The company’s 50 day moving average is $142.07 and its 200-day moving average is $125.81. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.23. Baidu has a 12 month low of $74.71 and a 12 month high of $165.30. The firm has a market cap of $43.39 billion, a price-to-earnings ratio of 41.76 and a beta of 0.32.

Institutional Investors Weigh In On Baidu

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Schroder Investment Management Group acquired a new stake in Baidu in the third quarter worth about $165,334,000. RPD Fund Management LLC grew its position in shares of Baidu by 161.6% during the 2nd quarter. RPD Fund Management LLC now owns 1,258,856 shares of the information services provider’s stock worth $107,959,000 after buying an additional 777,570 shares during the period. Morgan Stanley lifted its holdings in Baidu by 38.0% in the fourth quarter. Morgan Stanley now owns 2,709,426 shares of the information services provider’s stock valued at $354,014,000 after buying an additional 745,588 shares during the period. Contrarius Group Holdings Ltd grew its holdings in Baidu by 500.3% during the 3rd quarter. Contrarius Group Holdings Ltd now owns 891,749 shares of the information services provider’s stock worth $117,506,000 after acquiring an additional 743,205 shares during the period. Finally, ARK Investment Management LLC raised its position in shares of Baidu by 127.8% during the 4th quarter. ARK Investment Management LLC now owns 1,157,878 shares of the information services provider’s stock valued at $151,288,000 after acquiring an additional 649,490 shares during the last quarter.

Key Baidu News

Here are the key news stories impacting Baidu this week:

• Positive Sentiment: Baidu announced a $5 billion share buyback and introduced a dividend policy for 2026, signaling material capital return that can support the stock floor. Baidu (BIDU) Unveils $5B Buyback as AI Business Revenue Soars 48% Year-Over-Year
• Positive Sentiment: AI-driven revenue is a bright spot — Baidu’s “AI-powered” business grew ~48% YoY in Q4 and now represents a much larger share of revenue, supporting long-term growth expectations if monetization continues. Baidu (BIDU) Unveils $5B Buyback as AI Business Revenue Soars 48% Year-Over-Year
• Positive Sentiment: Cathie Wood’s ARK Invest increased its Baidu stake, buying roughly 98,000 shares after the post‑earnings dip — a vote of confidence from a high‑profile AI-focused investor. ARK Invest Loads Up on Baidu Stock Following Post-Earnings Decline
• Neutral Sentiment: Baidu topped quarterly revenue estimates, helped by cloud/AI growth — this mitigated some concerns but didn’t fully offset other negatives. China’s Baidu tops quarterly revenue estimates
• Neutral Sentiment: Management highlighted operational progress (AI cloud infra, Apollo Go ride milestones), which supports the longer-term strategy though near-term monetization remains a work in progress. Baidu Inc (BIDU) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Core concerns: revenue fell ~4% YoY and net profit dropped sharply (reports cite a large profit decline), driven by continued weakness in advertising — investors worry ad recovery will be slow. Baidu Revenue Falls 4% as Profit Drops 41% in December Quarter
• Negative Sentiment: Market reaction: despite buyback/dividend and AI progress, the results highlighted profitability compression and ad weakness, triggering an immediate selloff and pressuring the stock. Baidu slides as Q4 profit miss and ad weakness overshadow AI growth updates

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.