The Baidu Bears Won’t Quit

Baidu CoffeeShares of Baidu (NASDAQ:BIDU) faced selling pressure on Tuesday despite broad market gains. The Chinese search giant received a double blow from analysts at Goldman Sachs and Citigroup, which both delivered some bearish news. Shares were off 2.4 percent in late-afternoon trading.

According to Forbes, an analyst at Goldman Sachs reiterated a Neutral rating on the stock, but dropped the price target from $135 to $89, below the stock’s current trading price of about $92 per share. The analyst also cut earnings per share estimates by 22 percent for 2013, and 30 percent for 2014.

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The reasons why the company’s targets were lowered are based on the same concerns that have plagued the company since it took center stage as China’s number-one search engine: mobile cannibalization, and competition. The analyst cites growing mobile use as a threat to Baidu’s revenues and currently high margins. Like Facebook (NASDAQ:FB), Baidu is spending a tremendous amount of money trying to figure out how to monetize mobile activity through advertising. With no clear solution in sight, it’s seems safer to bet on the bearish case…