Chinese Stock Crisis? These Trade Near Cash Value
PUBLISHED
AUG 8, 2021 5:45AM EDT
Excerpt
Baidu Inc.
China is the world’s largest internet market, and Baidu is the country’s largest internet search engine, with 94.5% market share, according to Statist.com. That’s why it is called the “Google of China.” It also owns Baidu Feed, which provides users with personalized searches, plus the Haokan short video streaming app, and the Quanmin flash video app, for creating and sharing short videos.
Meanwhile, Baidu is catching up with its American counterpart Google ( GOOGL in innovation and has made it to MIT Technology Review’s annual listings of the 50 most innovative companies.
Baidu’s dominant position in internet search and streaming video services, along with its innovative drive, have helped the company accumulate $482.43 per share, which exceeds current market price, even after the $82 billion in debt are factored in.
Simply put, Mr. Market—to use Benjamin Graham’s expression--is too pessimistic on Baidu shares, leaving cash on the table.
The 17 Wall Street analysts following Baidu see its shares trading at an average price of $288.07 12 months from now, with a high forecast of $370.00 and a low forecast of $156.00. The average Baidu price target represents a 75.37% change from the last price of $164.26.
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