Bernstein lowers its Baidu (NASDAQ:BIDU) target from $180 to $130 and maintains a Market Perform.
The firm says the "heavy investment in feed is value destructive" and Baidu "should stick with the core business in search going forward."
Bernstein says Baidu still has a "dominant position in search and a strong balance sheet."
BIDU shares are down 0.3% pre-market to $112.71.
Baidu has an Outperform Sell Side rating.
Now read: Baidu: I Am Not Worried »
Subscribe for full text news in your inbox