Bear of the Day: Baidu (BIDU)

Baidu (BIDU) is the premier AI technology company in China and its shares recently benefited from the late September PBOC stimulus program.BIDU shares vaulted 35% from $86 to $116 in just eight trading days.But just as quickly, the excitement has faded and the stock is back below $90, much to the surprise of uber China bulls.My colleague Andrew Rocco has written extensively about the exploits of one such enthusiast, namely celebrity hedge fund manager David Tepper who helms the Appaloosa Fund.You can find some good recent coverage here...Sep 26: Tepper Crushes China Trade: Here's Why he's Still BullishAug 19: Is it Time to Buy Chinese Stocks?What stands out is that Andrew was anticipating the extreme value in China tech shares even before the PBOC booster action.So why is Baidu in the cellar of the Zacks Rank?Revenue estimates for Baidu continue to drift in the zero to 5% range.But it's the downward pressure on EPS projections that make for the #5 Rank.In the past month, the consensus for this year has slipped a trifle from $11.33 to $11.17. But 2025 estimates have dropped 5% from $12.28 to $11.68.Not a dramatic slide, but given the top line "flat line" it's concerning for growth investors looking at a foreign economy that is even having trouble boosting their own equities.Bottom line: I've always been a fan of Baidu for their AI innovation and central position in the AI economy. I hope some day soon that their government gets out of the way and lets foreign investors (us) participate in their upside.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks