Baidu Inc. (BIDU) is gearing up to release its second-quarter earnings on Thursday, and Wall Street is anticipating $2.76 in earnings per share (EPS) and $4.4 billion in revenue. While the stock has seen a decline of about 28.5% over the past year and 22.6% year-to-date, a closer look at the technical indicators reveals a mixed picture for the company.
While Baidu’s stock price sits slightly above its eight-day and 20-day simple moving averages (SMAs), suggesting potential short-term upward momentum, it is trading below its 50-day and 200-day SMAs. This discrepancy between short-term and long-term trends indicates a prevailing selling pressure that could push the stock further down.
Adding to the bearish sentiment is the Moving Average Convergence Divergence (MACD) indicator, which sits at a negative 0.65. This suggests that the stock’s momentum is currently heading downwards. While the Relative Strength Index (RSI) is at 52 and moving upwards, indicating a potential reversal, it’s not yet at a level that would definitively signal a bullish turn.
The Bollinger Bands, on the other hand, offer a more mixed message. The stock is trading beyond the lower bearish band, having recently reached the upper bullish band, indicating an attempt to find support.
Overall, despite some short-term bullish signals, the majority of technical indicators point to a bearish outlook for Baidu in the near term.
The consensus analyst rating on Baidu stock currently stands at a ‘Buy’, with a price target of $165.67. Recent analyst ratings from Bernstein, Benchmark, and Barclays suggest an average price target of $130 for Baidu, implying a potential 45.19% upside.
Baidu stock was trading at $89.14 at the time of this publication.
As investors anxiously await Baidu’s earnings report, understanding the technical landscape becomes crucial for informed decision-making. While the short-term outlook is slightly positive, the long-term indicators point to potential challenges for Baidu stock in the near future.
