NEW YORK (TheStreet) -- Shares of Baidu Inc (BIDU) are slipping, down 2.43% to $198.75 in mid-morning trading Tuesday, after the Chinese-language Internet search provider was downgraded to "neutral" from "buy" this morning by analysts at JPMorgan Chase.
The firm also lowered its price target to $215 from $240, citing Baidu's weak first quarter earnings results and soft second quarter guidance.
JPMorgan analysts said they expect slowing revenue growth from mobile monetization.
Beijing-based Baidu is an Internet search provider serving three types of online participants which include users, customers and its union members.
Insight from TheStreet's Research Team:
Timothy Collins commented on Baidu in a recent post on RealMoney.com. Here is a snippet of what Collins had to say about the stock:
China has been all the rage lately and emerging markets have been hot in general. But China's search giant Baidu (BIDU) has not done much. It got me wondering if the stock has become to "Americanized." Baidu shares are getting a little kick this morning along with the broader market, but I still have concerns with its chart.
First, it doesn't scream short, but it does advise you to look twice before buying. Friday, the stock held important support just above $200 and that's a good thing for bulls. This line looks to be a big one thus far in 2015. We did see a short break of $202 in October 2014 when $195 held as secondary support, so that's definitely a number to keep in mind if it fails to hold. The main pattern that has my focus is this combination of the parabolic stop and reverse, the Relative Strength Index and slow stochastics. The RSI is below 50 and struggling. The slow stochastics also saw a bearish crossover right when Baidu hit the double price resistance lines, one ascending and the longer term descending. Combine this with the pattern in the parabolic stop and reverse and I have concerns.