Why Shares of Baidu Rose 12.5% in June
Shares of Chinese search engine Baidu (NASDAQ: BIDU) rose 12.5% in June, according to data from S&P Global Market Intelligence. Shares got a one-two punch of good news around the middle of the month, as Baidu received an analyst upgrade on China's economic reopening. That was followed by reports that another large company might be willing to buy out Baidu's controlling stake in video streaming company iQiyi (NASDAQ: IQ).
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In mid-June, Mizuho analyst James Lee reiterated a "buy" rating on Baidu shares, giving the company a $175 price target, well above the $123 share price today -- even after June's surge. Lee believes China's reopening will bring back advertising revenue growth to Baidu's platform. Lee's research indicates internal improvements at Baidu has allowed it to gain market share over the past year, and that a subsequent return to ad revenue growth will occur in the back half of 2020.
Source Fool.com
