Baidu Upgraded By JPMorgan

The recent success of Baidu's news feed advertising has seen the company upgraded by JPMorgan. Following a drop of 13% in stock price throughout 2016, Baidu is once again gaining momentum. Whilst high levels of competition from WeChat and Weibo have made the company's growth a challenge, the introduction of monetisation to its News Feed feature in October 2016 is expected to account for between 4% and 7% of total revenue before the start of 2018. A JPMorgan analyst said that Baidu's competition in the in-feed ads market is expected to come from Tencent and Alibaba, who have recently introduced similar features.