Shares of Baidu (BIDU) - Get Report are down 2% Wednesday after analysts at J.P. Morgan resumed coverage of the stock with an underweight rating and a $164 price target. 

This is a "devastating" piece of research, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Cramer said the analysts see a slowdown in user engagement and traffic; beyond search, the company lacks future growth catalysts. There are both short- and long-term challenges. 

"There is no way I would own this if I read this" report, Cramer said. 

Baidu operates in China, which is a different regulatory environment, he explained. If the government wants to tighten regulations, it can do so at will. Baidu is essentially at the mercy of the government and right now the government is not favoring Baidu, Cramer concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.