Baidu (NASDAQ:BIDU) Shares Gap Down – Time to Sell?

Baidu, Inc. (NASDAQ:BIDU)’s share price gapped down prior to trading on Monday . The stock had previously closed at $150.30, but opened at $144.67. Baidu shares last traded at $145.4020, with a volume of 1,757,772 shares trading hands.

More Baidu News

Here are the key news stories impacting Baidu this week:

• Positive Sentiment: Spin-off / IPO as a clear catalyst — Baidu is moving to spin off its AI chip unit Kunlunxin via a Hong Kong IPO, a structural move investors view as unlocking value for BIDU and highlighting China’s push for domestic chips. This is the primary positive driver behind the recent rally. Baidu Is Spinning Off Its AI Chip Unit
• Positive Sentiment: Fundamentals & growth supporting the thesis — Baidu’s AI/cloud businesses are accelerating (cloud revenue +21% and AI accelerator revenue +128% YoY in Q3’25), which strengthens the case that Kunlunxin could command strong investor interest and valuations. Baidu: AI Chip Unit IPO A Major Catalyst
• Positive Sentiment: Heavy bullish trading / options flow — Traders bought large volumes of BIDU call options around the IPO headlines, amplifying the short-term upside momentum and volatility. This drove part of the 20%+ move into a new 52-week high. Traders Purchase Large Volume of Baidu Call Options
• Neutral Sentiment: Regional IPO backdrop — Broader Asia IPO activity remains robust, which provides a favorable listing environment for Kunlunxin but doesn’t guarantee outsized proceeds or immediate re-rating for BIDU itself. From Baidu Unit to Jio, Asia’s IPO Boom Shows No Sign of Slowing
• Neutral Sentiment: Street positioning & analyst views — Institutional activity is mixed but interest from major asset managers and multiple buy/outperform ratings support longer-term interest; median analyst target recently around $153 (wide dispersion exists). Baidu Stock Opinions on AI Chip Unit Spinoff
• Negative Sentiment: Profit-taking, valuation and specific selling — After the spike, some investors are taking profits; BIDU’s forward valuation is rich (PE ~49.6) and trading volume has fallen below the 3-month average today, which can amplify down-moves. Also, some large holders cut positions in Q3’25. Baidu Stock Opinions on AI Chip Unit Spinoff
• Negative Sentiment: Volatility & skepticism — Social-media excitement has inflated short-term expectations (price targets as high as $200 circulating) and some market participants warn the rally may be driven more by headline trading than by immediate fundamentals. That raises the risk of sharp reversals if IPO details or timing disappoint. Baidu Skyrockets 20% as Chip Unit Eyes IPO in HK

Analyst Ratings Changes

BIDU has been the subject of a number of recent research reports. JPMorgan Chase & Co. upgraded Baidu from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $110.00 to $188.00 in a research report on Monday, November 24th. Daiwa Capital Markets set a $160.00 target price on shares of Baidu and gave the stock a “buy” rating in a research report on Tuesday, October 14th. Citigroup reaffirmed a “buy” rating on shares of Baidu in a research note on Monday, December 8th. UBS Group set a $188.00 target price on shares of Baidu in a research note on Monday, November 24th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Baidu in a research report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $147.44.

Baidu Stock Down 0.2%

The firm has a market cap of $51.80 billion, a price-to-earnings ratio of 49.81 and a beta of 0.30. The firm has a 50-day moving average of $123.20 and a two-hundred day moving average of $110.35. The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.23.

Hedge Funds Weigh In On Baidu

Hedge funds and other institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc bought a new position in Baidu during the 2nd quarter valued at about $29,000. Winthrop Capital Management LLC bought a new position in Baidu in the 2nd quarter worth approximately $39,000. Mizuho Securities Co. Ltd. bought a new stake in shares of Baidu during the second quarter worth $43,000. UMB Bank n.a. lifted its stake in shares of Baidu by 65.0% during the third quarter. UMB Bank n.a. now owns 340 shares of the information services provider’s stock valued at $45,000 after acquiring an additional 134 shares during the period. Finally, Ameritas Advisory Services LLC boosted its holdings in Baidu by 12,400.0% in the third quarter. Ameritas Advisory Services LLC now owns 375 shares of the information services provider’s stock valued at $49,000 after acquiring an additional 372 shares during the last quarter.

Baidu Company Profile

Baidu, Inc, founded in 2000 and headquartered in Beijing, is a Chinese multinational technology company best known for operating one of China’s leading internet search engines. The company built its business around online search and related advertising services, providing search, content aggregation and targeted ad placements to consumers and marketers across China. Baidu went public on the NASDAQ in 2005 and has since diversified beyond search into a broader technology and AI-focused portfolio.

Core products and services include the Baidu search platform and mobile app, Baidu Maps and Baidu Baike (an online encyclopedia), along with digital content initiatives.