From Nasdaq:

In 2005, Baidu’s IPO could have turned a $10,000 investment into $1.26 million at its peak, but today it would only be worth $389,000. Despite stumbling stock, Baidu is China’s largest search engine, expanding in AI and cloud platforms with a market value of $37 billion.

From 2005 to 2015, Baidu’s revenue surged due to China’s growth and Google’s exit. But from 2015 to 2020, its revenue growth slowed as competitors gained ground. Baidu faced challenges from mobile apps and a cooling Chinese economy post-pandemic, impacting its ad revenues and growth trajectory.

In 2021, Baidu’s revenue grew 19%, dipped 8% in 2022, and rose 6% in 2023. Its focus on AI cloud platform, managed business pages, and mobile app expansion supports growth. Looking ahead, stable revenue and EPS growth suggest Baidu may be a mature tech stock, not a high-growth play.

Baidu may struggle to command higher valuations as growth cools. With steady earnings growth, Baidu’s stock could reach $650 in two decades, turning a $10,000 investment to $62,000. However, it is no longer a millionaire-making play like in the past, appealing to investors seeking gradual growth in China’s market.

Investors considering Baidu should weigh future growth prospects. While Baidu is not in the 10 best stocks recommended by Stock Advisor, it is a solid long-term investment option with steady growth potential. Baidu’s progress in AI and cloud services, despite being a mature tech stock, could offer stable returns in the future.



Read more at Nasdaq: Could Baidu Stock Help You Become a Millionaire?