Bullish options flow was detected in BIDU stock on January 13, 2020.
The bullish options flow was likely caused by Mizuho analyst James Lee who recommends Baidu (BIDU) with a $175 price target as his top 2020 China Internet pick. For U.S. Internet, the analyst believes regulatory concerns are overstated, and that the risk “is already baked into valuations of large-cap stocks.” For China Internet, Lee believes advertising will recover and outperform the e-commerce segment.
On January 10, 2020, Barclays analyst Gregory Zhao raised his price target for Baidu to $150 from $140 while keeping an Equal Weight rating on the shares. Baidu was an industry laggard in 2019, but investor interest has increased over the last week, Zhao tells investors in a research note. The Street seems to be looking for a turnaround in China’s online advertising market in 2020 and expects Baidu core to gradually recover from the trough in Q3, adds the analyst.
On January 2, 2020, we got the news that China was moving to protect its domestic tech companies like BIDU. China’s competition regulator is looking to expand the country’s antitrust law to internet companies, The Nikkei’s Shunsuke Tabeta reports. The draft legislation would extend the definition of what constitutes a dominant position with potential to harm competition, adding companies’ ability to collect and process data to the criteria, as well as the scale of their internet operations and first-mover advantage. China has blocked most of the services provided by Google (GOOGL), Facebook (FB) and other foreign search and social media networks, while Amazon (AMZN) last year announced plans to leave the country’s ecommerce market. Source: https://asia.nikkei.com/Business/China-tech/China-readies-wider-antitrust-law-to-cover-internet-companies