Yahoo Finance The Baidu (NASDAQ:BIDU) Share Price Is Down 51% So Some Shareholders Are Wishing They Sold
Investing in stocks comes with the risk that the share price will fall. And there's no doubt that Baidu, Inc. (NASDAQ:BIDU) stock has had a really bad year. In that relatively short period, the share price has plunged 51%. Notably, shareholders had a tough run over the longer term, too, with a drop of 43% in the last three years.
See our latest analysis for Baidu
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Unhappily, Baidu had to report a 36% decline in EPS over the last year. This reduction in EPS is not as bad as the 51% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on Baidu's earnings, revenue and cash flow.
A Different Perspective
Investors in Baidu had a tough year, with a total loss of 51%, against a market gain of about 3.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 13% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before deciding if you like the current share price, check how Baidu scores on these 3 valuation metrics.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
