Baidu, Inc. (BIDU:NSD) is expected to release its fourth quarter Fiscal 2022 results on February 22, before the opening of the market. The market anticipates that the company will report fourth-quarter earnings of $2.01 per ADS, up 19% year-over-year. Nevertheless, analysts anticipate revenues of $4.68 billion, a decrease of 9.8%.
It is noteworthy that the Chinese internet search engine has exceeded Wall Street’s earnings projections for the past twelve quarters.
Baidu HK stock performance during the quarter may have been bolstered by the AI Cloud division, which benefited from the fast-expanding Chinese cloud services industry. In addition, its autonomous ride-hailing service, Apollo Go, enjoys a first-mover advantage in China.
But, Q4 advertising income and subscriber growth were likely hurt by COVID-19-related lockdowns in China, regulatory obstacles for Chinese internet companies, and US-China trade concerns.
Website Traffic Displays Prospects:
Global visitors to baidu.com increased by 13.9% year-over-year over the upcoming quarter. The increase in monthly visitors may suggest that demand for the company’s products remained robust throughout the quarter.
Is BIDU HK Stock a Good Buy?
The stock is met with cautious optimism on Wall Street. The consensus rating for BIDU HK stock is Strong Buy, based on 14 Buy, five Hold, and one Sell ratings. The average price objective for BIDU stock is $169.50, which indicates a possible upside of 13.5% from present levels. In 2023, stocks have gained almost 19% so far.
The advertising sector, the company’s primary source of revenue, has been significantly damaged by inflationary pressures and economic recession. But, Baidu’s efforts to extend its operations into other lucrative fields, such as robotaxis and cloud business, are still commendable.