Baidu (NASDAQ:BIDU) Shares Gap Down – What’s Next?

Baidu, Inc. (NASDAQ:BIDU) 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.

Baidu News Roundup

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

Wall Street Analyst Weigh In

BIDU has been the subject of several recent analyst reports. Zephirin Group started coverage on Baidu in a report on Monday, September 15th. They issued a “sell” rating and a $92.00 price target for the company. CLSA upgraded Baidu to a “strong-buy” rating in a research note on Monday, September 22nd. Benchmark raised their price objective on shares of Baidu from $115.00 to $158.00 and gave the company a “buy” rating in a report on Wednesday, November 19th. Nomura Securities raised shares of Baidu from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 19th. Finally, Daiwa Capital Markets set a $160.00 target price on Baidu and gave the company a “buy” rating in a research report on Tuesday, October 14th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $147.44.

Baidu Trading Down 0.2%

The company has a market capitalization of $51.80 billion, a PE ratio of 49.81 and a beta of 0.30. The stock has a fifty 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.

Institutional Trading of Baidu

Several large investors have recently modified their holdings of the company. Schroder Investment Management Group purchased a new stake in shares of Baidu in the 3rd quarter worth $165,334,000. Kingstone Capital Partners Texas LLC bought a new stake in Baidu during the second quarter worth approximately $80,618,000. RPD Fund Management LLC lifted its stake in shares of Baidu by 161.6% in the 2nd quarter. RPD Fund Management LLC now owns 1,258,856 shares of the information services provider’s stock valued at $107,959,000 after purchasing an additional 777,570 shares during the last quarter. Contrarius Group Holdings Ltd increased its position in shares of Baidu by 500.3% during the 3rd quarter. Contrarius Group Holdings Ltd now owns 891,749 shares of the information services provider’s stock valued at $117,506,000 after purchasing an additional 743,205 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in Baidu by 106.7% during the 3rd quarter. Bank of America Corp DE now owns 1,129,272 shares of the information services provider’s stock valued at $148,804,000 after buying an additional 582,832 shares during the period.

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.