The 4 Biggest Risks Facing Baidu's Stock

Baidu's (NASDAQ: BIDU) stock recently rallied after the Chinese tech giant raised its fourth-quarter guidance ahead of its full earnings report on Feb. 27. It now expects its revenue to rise 5.1% annually at the midpoint, compared to its prior forecast for 2.6% growth.

It expects revenue from its core businesses, which exclude entertainment platform iQiyi (NASDAQ: IQ) and other non-core businesses, to grow 4%-6%, compared to a previous forecast for 0%-6% growth. It also expects the midpoint of its non-GAAP net income to nearly double.

Those numbers sent analysts scrambling to revise their estimates, and indicated that Baidu's struggling ad business was improving and that its stock was finally bottoming out. But before investors load up on Baidu's stock, they should review the four biggest threats to its long-term growth.

Source Fool.com