Bear of the Day: Baidu (BIDU)

Core Viewpoint - Baidu's stock experienced significant volatility, initially rising 35% due to a PBOC stimulus program, but has since fallen below $90, raising concerns among investors [1]. Group 1: Stock Performance - Baidu shares surged from $86 to $116 in eight trading days following the PBOC stimulus [1]. - The stock has since declined, returning to below $90, surprising many bullish investors [1]. Group 2: Financial Projections - Revenue estimates for Baidu are projected to remain flat, ranging from 0% to 5% growth [1]. - EPS projections have faced downward pressure, contributing to Baidu's low Zacks Rank of 5 [1]. - The consensus EPS estimate for this year has slightly decreased from $11.33 to $11.17, while 2025 estimates dropped by 5% from $12.28 to $11.68 [2]. Group 3: Market Sentiment - There is concern among growth investors regarding Baidu's performance in a challenging foreign economic environment [2]. - Despite the challenges, Baidu is recognized for its AI innovation and central role in the AI economy, with hopes for improved foreign investor participation in the future [2].