Society for Case Research MBAA 2021

Experience level: 
Beginner
Intended Audience: 
All
Authors: 
Yanli Zhang Feliciano School of Business Montclair State University 1 Normal Ave, Montclair, NJ 07043 Tel: (973) 655-7863; Fax: (973) 655-7678 Email: zhangy@mail.montclair.edu

An Investment Framework – Is Baidu a Buy or Sell?

On December 18, 2020 Jasmine Zhang, a senior management and finance major at Smart University, was hard at work on the capstone assignment for her Investments class. Her professor had asked each student to perform an investment analysis on a stock of his or her choosing, and to conclude it with a buy or sell recommendation. Furthermore, the professor had instructed students to consider all of the relevant information when making their recommendation: the financial condition of the firm, the current valuation of the stock, the competitive and regulatory landscape the firm faces, and the quality of the firm’s management. Now after doing all research, Jasmine was debating in herself: Should she should recommend a buy or sell for Baidu?