Baidu (NASDAQ:BIDU) Core Revenue – which includes revenues from advertising and the company’s various transaction services – rose from $11.3 billion in 2019 to about $11.9 billion in 2020. Trefis expects the metric to rise to about $12.5 billion in 2021 and to around $13 billion in 2022.
We expect growth to be driven by the expansion in the e-commerce market in China and Baidu’s continuing dominance in the Chinese search engine market.
We think that the projected growth isn’t priced into Baidu stock just yet. We value the stock at about $224 per share, about 40% ahead of the current market price.