What's Going On With Baidu Stock Tuesday?

Baidu Inc. (NASDAQ:BIDU) stock fell nearly 8% in Tuesday’s premarket trading as the Chinese tech stock remained under pressure near its 52-week low. Nasdaq futures rose 0.20%, while S&P 500 futures slipped 0.13%.

Baidu Stock Tests Key Support

Baidu shares have struggled for months. The stock trades 5.8% below its 20-day simple moving average of $97.71. It is also 12.8% below its 50-day SMA of $105.56 and 25% below its 200-day SMA of $122.72.

The bearish setup follows a death cross in April, when the 50-day SMA fell below the 200-day SMA. Meanwhile, Baidu’s relative strength index stands at 50.68, indicating neutral momentum.

The stock’s 52-week low of $89.60 now serves as a key support area.

Opens Hong Kong Shares To Mainland Investors

Separately, Baidu said its Hong Kong-listed Class A shares have joined both the Shenzhen-Hong Kong and Shanghai-Hong Kong Stock Connect programs.

The inclusions took effect Monday, Sept. 7. They allow eligible mainland Chinese investors to trade Baidu shares directly through the two programs.

Baidu said the move could broaden its mainland investor base and improve share liquidity. The company’s Hong Kong-listed shares trade under 9888 on the Hong Kong dollar counter and 89888 on the renminbi counter.

Baidu Analyst Outlook

Baidu carries a Hold consensus rating and an average price forecast of $133.50.

Susquehanna recently lowered its forecast to $105 while maintaining a Neutral rating. Benchmark cut its forecast to $150 with a Buy rating. Barclays lowered its forecast to $96 and kept an Equal-Weight rating.

Top ETF Exposure

• KraneShares 2x Long BIDU Daily ETF (NASDAQ:KBDU): 199.95% Weight
• Invesco Golden Dragon China ETF (NASDAQ:PGJ): 6.46% Weight
• Themes China Generative Artificial Intelligence ETF (NASDAQ:DRGN): 5.10% Weight

Significance: Because BIDU carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Baidu Price Action

BIDU Stock Price Activity: Baidu shares were down 7.46% at $92.05 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock