Baidu is a household name in China today and it is aggressively on the hunt for its own sweet spot in the self-driving car competition as its core business mellows down.
Baidu (NASDAQ: BIDU) was the biggest stock in China's internet boom ten years ago, and investors are now pondering: should they buy it, or not.
Technically, it's a bleak scenario for Baidu Inc stock. The company's shares posted a record 284.21 in May last year and were hovering near a three-year cellar at 105.49 late Sunday.
Since undercutting the point on earnings in May, stocks are back over the 10-week row. But they have mostly traded for more than a year with that fading level of support. In just 12 months, Baidu Inc's shares have not traded beyond the long-term, 40-week average, as what analysts' have expected.
In its last session, BIDU's overall volume was pegged at 215,715 shares, while its relative volume of trading is 0.588. In more technical terms, the company's stock price target is $148.14, with a magnitude alpha of 1.72. More than 1 beta stock means high volatility and less than 1 beta means low volatility.
Baidu stock's relative strength line (RSL) is nearly ten years weak, suggesting extreme underperformance. This is another bearish technical warning, as BIDU stock output versus the S&P 500 index is monitored by the RS column.
Of the world's most influential internet market, Baidu controls approximately one-third of total search traffic. The business generates 80 percent of its total revenue from sales of marketing products, mostly from ads on search and feed pages of the company.
However, despite this, Baidu stock is now just a shadow of its former existence. Shares dipped in May after a fall in its core earnings. After another collapse in earnings last August, the company's stocks did recharge, only to succumb to strong resistance from the charts.
After a rough year of expectations for a China trade closure, most Chinese internet stocks seem to have recuperated, and that includes BIDU and Alibaba (BABA) stock. But that was all they could muster.
Now, Baidu remains the clear straggler between Alibaba and Tencent, popularly referred to as "Big Three BAT" stocks. BAT is an acronym that stands for Baidu Inc, Alibaba Group Holding Ltd., and Tencent Holdings Ltd.
It may take some time before a buy-point for BIDU stock appears on a technical analysis standpoint. Early Monday, Baidu, Inc. posted a 0.35 percent rally from the previous day at $105.03 in the latest session.
