BIDU Down 7.5% In A Day. History Shows It Can Get Worse.
- In Inflation Shock, Baidu stock declined 77% vs 25% for S&P 500. During global financial crisis, it dropped 75% compared to the S&P 500’s 57%.
- Following the Inflation Shock, the stock has not yet recovered to its pre-crisis peak, whereas the S&P 500 recovered in 15 months. In the 2018 correction, the stock took 18 months to recover, compared to 4 months for the S&P 500.
Baidu Stock Performance In Market Crashes:
| BIDU | S&P 500 | |
|---|---|---|
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -75% | -57% |
| # of Months for Full Recovery | 10 | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -67% | -20% |
| # of Months for Full Recovery | 18 | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -67% | -34% |
| # of Months for Full Recovery | 18 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -77% | -25% |
| # of Months for Full Recovery | Yet to Recover | 15 |
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