Forecast Of The Day: Baidu Core Revenue
What?
Baidu (NASDAQ:BIDU) Core Revenue – which includes revenues from ads and transaction services – rose from around $11.3 billion in 2019 to about $12 billion in 2020. Trefis expects the metric to rise to about $14 billion in 2021 and to about $14.7 billion in 2022.
Why?
We expect growth to be driven by growth in the Chinese e-commerce market and Baidu’s continuing dominance in the Chinese search engine market.
So What?
We think Baidu stock is meaningfully undervalued. We value BIDU at about $220 per share, 30% ahead of the current market price.
See Our Complete Analysis For Baidu Stock
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| Returns | Feb 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| BIDU Return | 5% | 12% | 2% |
| S&P 500 Return | -1% | -6% | 100% |
| Trefis MS Portfolio Return | 2% | -8% | 264% |
[1] Month-to-date and year-to-date as of 2/17/2022
[2] Cumulative total returns since the end of 2016