Baidu, Inc. (NASDAQ:BIDU) [Trend Analysis] anticipates to have the edge in autonomous driving following years of running China’s largest search engine armed it with expertise in machine learning and mapping. The internet giant is sticking to a plan to have self-driving cars ply China’s roads by 2018, then mass production by 2020. The firm will focus on its home market despite road conditions there being much more complex than in developed countries, Chief Financial Officer Jennifer Li told the Bloomberg Markets Most Influential Summit in Hong Kong. As shares moving down -1.62% to $187.74.
Baidu is banking on artificial intelligence and automobiles to provide much-needed engines for growth as its search business decelerates. This year, it’s predictable to post its slowest pace of income growth since going public, as Tencent Holdings Ltd. and Alibaba Group Holding Ltd. draw advertisers away. Baidu however hasn’t outlined a business plan for AI.
Starting with EPS for the final quarter of this year. EPS is usually the indicator of profitability for the company. According to WSJ analysis, the Q4 2016 current estimates trends were for $1.15 as compared to the next year Q1 current trend of $1.28. While on annual basis the current EPS estimates trend for FY 2017 came in for $6.62 as compared to three months ago $6.61.
The stock prices target chart showed high target of 222.00 kept by analysts at WSJ while the average price target was for 184.95 as compared to current price of 187.74. Somehow, the stock managed to gain BUY ratings by 17″ Analysts in current tenure as 1 analyst having overweight ratings, 9 recommend as HOLD, 2 stands at Underweight and 2 gave it as a SELL security for current period. Overall, the consensus ratings were for Overweight by the pool of analysts.
The stock is going forward its 52-week low with 42.22% and moving down from its 52-week high price with -13.87%. To have technical analysis views, liquidity ratio of a company was calculated 3.10 as evaluated with its debt to equity ratio of 0.46. The float short ratio was 2.00%, as compared to sentiment indicator; Short Ratio was 1.85.
Recent Investment Review
In July, the firm warned investors that restrictions on internet advertising will hurt income growth for the next two to three quarters, and it forecast lower-than-predictable sales of 18.04 billion ($2.7 billion) to 18.58 billion yuan in the third quarter. That came as the government implemented rules to limit the number of ads that can be displayed on each page. Baidu is also expecting slower consumer growth as it re-checks the credentials of advertisers to ensure their businesses are legitimate.