Baidu slides 2.42%; closes lower for nine consecutive days
- The day's trading volume totalled 1.83 million shares -- slightly under the 21-day average of 2 million.
- Yesterday's fall added to a 14 day bearish run, during which Baidu lost $15.29.
The Chinese technology company has recovered 71.32% since descending to a significant low of $76.57 around 10 months ago.
So far in 2023, it has performed better than the Nasdaq by 5.82%.
The Chinese tech giant's market cap currently stands at $44.75 billion
yesterday's trading volume was 1.83 million shares which is slightly under the 21-day average of 2 million.
Baidu expected revenue of $4.57 billion with an EPS of $2.57.
Fundamental analysis indicates that Baidu is holding on to its 'Buy' rating.
Analysis of Baidu's fundamentals indicates the company's solid 7.88 billion in free cash flow (FCF) is particularly notable for investors. FCF is the cash a company generates after accounting for cash outflows that support operations and capital assets. Although the company's FCF suffered a recent decline from 8.76 billion, cash generation remains resilient and superior to its nearest peers. Price to book ratio is above the industry average, increasing from 0.21 to 0.2.
Though Baidu is experiencing an overall decline in comparison to previous filings, its fundamentals remain slightly greater than the industry average.
Baidu was not the only decliner in the communication services sector; Alphabet closed at $131.36 (down 2.4%). AT&T lost 1.54% yesterday and closed at $15.31. Verizon goes down 0.92% yesterday to close at $33.6.
Chart analysis indicates Baidu Inc could begin to recover as it approaches significant support, now $2.39 away from $125.61. Dipping below could be an indication that further losses are ahead.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored.
Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $127.19, a low enough level to, generally, suggest that Baidu is trading below its fair value.
With market volatility ebbing, the current technical outlook indicates Baidu will remain range-bound for the immediate future.
REGION: United States ASSET: Baidu (BIDU) PREV. OPEN: $127.23 PREV. CLOSE: $128 PRE-MARKET: $128 TIME TO OPEN: 7 hours