Oppenheimer downgrades Baidu (NASDAQ:BIDU) from Outperform to Perform and removes its $205 PT citing higher spending that will keep BIDU shares range-bound through 2019.
The firm sees higher investments in "key strategic areas" like content, short video, and cloud computing but doesn't expect to see revenue benefits until late 2019 or early 2020.
In the meantime, Oppenheimer expects Baidu "will see meaningful negative estimate revisions over the next earnings cycle."
Baidu shares are down 0.9% pre-market to $179.47.
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