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Baidu

Why would it hold? BAIDU Big LevelChina stocks have been beaten up in recent years as the US equities leave them in their wake. From hearing NVDA is larger than the entire china equity market, to China will always be in a bear market…are we finally into enough of support to see a material rally? BIDU is hitting a monthly support . This also happens as the US markets could be running into a distribution phase. Will the US Dollar staying below $102 help this emerging market company?
NASDAQ:BIDU
by Trading-Capital
1
$BIDU | Allocation | Market Exec | Technical Confluences: - Price is considered at Oversold conditions in the D1, Weekly and Monthly Timeframes - Taking a Fibonacci Retracement from the beginning to the high of BIDU, price action is now at the 78% Fibo retracement - Price levels coincides with a Demand Zone which has been a strong demand zone over many years every time these levels are tested Fundamental Confluences: - NASDAQ:BIDU is referred to as the 'Google of China' and has been diversifying it's offering into AI, cloud services and autonomous driving tech. - Locally, they are up against Tencent and Alibaba in the digital ads, AI and cloud services but on a global scale, Google and Microsoft are there against them - Being 'Google of China' gives them the brand recognition and giant user-base helping ads revenue - Financially, they have been reinvesting most of their profits back for R&D and business expansion which for me, is important for Baidu to leave their mark strongly and remain competitive globally. - Recent earnings showed that they missed Revenue slightly but it's higher than previous Revenue results; EPS has beaten estimates most of the time as well - However, Baidu has high reliance on the Chinese market and makes them vulnerable to economic downturns or regulatory matters which is the current situation for them now ----- NASDAQ:BIDU is a long-term hold for me and considering it's value has dropped, it could be a value play at 9x forward earnings. I have previously got my first entry into it early August. Prices is still pretty much at the same levels. I will still look to add on more in the Target Zone area and hold onto it for now Will revisit it again later on but it's still allocation period for me. If price breaks below 70 then, I may reconsider re-shifting my target buy levels -----
NASDAQ:BIDULong
by weekendanalyst
1
Tesla looking bullishTesla seems to have completed its corrective wave (2) and to have started its wave (3) with a short term target in the $235 area. A break above $235 would validate the exit of the large triangle formation and opens further up moves towards the all time high. On the opposite side, a break below $160 would invalidate this view. ------ It's recent partnership with Baidu regarding autonomous vehicles and AI data centers, and its increasing focus on the development of its functional humanoid robots (Optimus) seem to be encouraging news among others. I believe Tesla could be one of the most concrete way to play the AI revolution.
NASDAQ:TSLALong
by waverity
Baidu Announces First Quarter 2024 ResultsBaidu ( NASDAQ:BIDU ), a leading AI company with a strong Internet foundation, announced its unaudited financial results for the first quarter ended March 31, 2024. The company's online marketing revenue remained stable, while the end-to-end optimization of its AI technology stack continued to propel the growth of AI Cloud revenue during the quarter. Robin Li, Co-founder and CEO of Baidu, said that as a new era of Gen-AI unfolds in China, foundation models like ERNIE will serve as the underlying infrastructure, infusing various facets of people's lives. In the first quarter of 2024, Baidu Core's non-GAAP operating margin expanded both year-over-year and quarter-over-quarter to 23.5%. The company has established a track record of consistently improving operational efficiency. In the coming quarters, they will execute on what is needed to optimize their operational efficiency in support of their AI enabled businesses and high-quality growth, and maintain a healthy non-GAAP operating margin. Total revenues were RMB31.5 billion ($4.37 billion), increasing 1% year over year. Revenue from Baidu Core was RMB23.8 billion ($3.30 billion), increasing 4% year over year; online marketing revenue was RMB17.0 billion ($2.36 billion), up 3% year over year, and non-online marketing revenue was RMB6.8 billion ($935 million), up 6% year over year, mainly driven by AI Cloud business. Revenue from iQIYI was RMB7.9 billion ($1.10 billion), decreasing 5% year over year. Cost of revenues was RMB15.3 billion ($2.12 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business, partially offset by the decrease in content costs. Selling, general and administrative expenses were RMB5.4 billion ($745 million), accounting for 17% of total revenues in the quarter, compared to 18% in the same period last year. Research and development expenses were RMB5.4 billion ($742 million), decreasing 1% year over year, primarily due to a decrease in personnel related expenses and other R&D expenditures, partially offset by the increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs. Operating income was RMB5.5 billion ($760 million), and Baidu Core operating income was RMB4.5 billion ($629 million), and Baidu Core operating margin was 19%. Total other income, net was RMB1.2 billion ($173 million), decreasing 52% year over year, primarily due to a decrease in fair value gain from long-term investments, partially offset by the increase in net foreign exchange gain. As of March 31, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB191.8 billion ($26.56 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB185.8 billion ($25.73 billion). Free cash flow was RMB4.2 billion ($579 million), and free cash flow excluding iQIYI was RMB3.3 billion ($452 million). Baidu ( NASDAQ:BIDU ), China's largest search engine provider, still generates the majority of its revenue from online ad sales, which are under pressure due to slower Chinese economic growth. The company reported adjusted net income of 7 billion yuan for the quarter, beating the analysts' average estimate of 5.57 billion yuan, according to LSEG data. Technical Outlook Baidu ( NASDAQ:BIDU ) stock is down 0.78% as of the time of writing. NASDAQ:BIDU has a Relative Strength Index (RSI) of 56 which is down from the previous 60.
NASDAQ:BIDU
by DEXWireNews
Tesla among top 10 losers. Next what?Tesla is the 7th worst performer YTD in the Nasdaq-100. It is the 11th worst performer in the S&P 500. The stock stands 28% lower. Still, after reaching its lowest level on 22/April, the stock has rallied a remarkable 30%. On 24/April, the stock rallied 12% after the positive earnings call. On 29/April, the stock jumped another 15% after the announcement of the Baidu ( HKEX:9888 ) partnership. Yet in the longer term, outlook remains cloudy as margin compression owing to fierce competition from Chinese EV makers and the wider EV industry slowdown. MUSK'S CHINA VISIT LEADS TO BAIDU DEAL Last Sunday, Elon Musk flew to China on a surprise visit. The last minute visit led to speculation over a push to launch full self driving (FSD) in China. Persons close to the matter stated that Musk was expected to discuss the rollout of FSD software and permission to transfer data overseas, as reported in Reuters . One of the key hold-ups for the rollout of FSD in China has been access to map data. Musk’s recent trip seems to have addressed that as Tesla announced a partnership with Baidu for map data access. While, Musk has long claimed that Teslas will be able to run FSD without map data, this will allow them to roll-out the offering much sooner and boost the slowing revenue in one of their leading markets in China. FSD has been a recent revenue driver for Tesla. In 2024, Siena Capital analysts estimated that Tesla recognized almost USD 700 million in revenue, which represents 4.3% of their automotive revenue after stripping regulatory credits. BYD PARTNERSHIP Another strategic partnership that has helped boost investor sentiment at Tesla has been the strategic partnership with BYD ( HKEX:1211 ). While both companies are major competitors, BYD recently overtook Tesla as the largest EV manufacturer in terms of overall vehicle sales (including hybrids). However, the fierce competition has also taken a toll on both companies as it has led to price cuts to win over more customers. That’s why a technology-sharing partnership between the two companies is positive. While, they continue to compete, the partnership – specifically related to the use of BYD’s LFP battery technology in certain low-cost Tesla models – remains a positive for Tesla as it allows them to diversify their battery supply chain, reduce production costs, and enhance range for their lower-cost models. LOW-COST MODELS COMING SOONER THAN EXPECTED A recent hurdle for Tesla has been delay behind the upcoming low-cost Model 2 vehicle which plays a pivotal role in Tesla’s growth strategy. According to a Reuters report , Tesla had opted to cancel or indefinitely postpone plans for the upcoming Model 2. Instead, it would focus its attention on Robo-Taxis. The low-cost car represented the next phase of Musk’s long-term master plan to produce affordable electric vehicles through manufacturing process improvements. Fears were that fierce competition in the low-cost category by Chinese manufacturers would make Tesla’s efforts unfeasible. Yet, Elon Musk disputed the Reuters report and at the Q1 earnings investor call, it was verified. The Model 2 strategy is still on track. In fact, it may come sooner than expected at the end of 2024. Musk stated that Tesla was accelerating the launch of more affordable models that will be available to produce on its existing manufacturing lines. Tesla aims to fully utilize its current production capacity towards these efforts and grow manufacturing 50% over 2023 before they start investing in new manufacturing lines. Additionally, the robo-taxi push is also underway. Elon Musk stated that Tesla will launch its long-awaited robo-taxi product as soon as 8/August/2024. The autonomous driving robo-taxis will earn revenue for their owners. Moreover, owners will be able to add their Tesla's to the robo-taxi shared fleet with just one click on the Tesla app. BEARISH CLOUDS PERSIST Despite these recent developments, the outlook for Tesla remains undeniably cloudy. At its Q1 earnings, Tesla reported dismal results. But it’s not just Tesla which is struggling, it’s the wider EV industry. EARNINGS SUMMARY Tesla's Q1 2024 earnings report released on 23/April revealed a challenging quarter marked by margin compression and a slowdown in electric vehicle (EV) sales, influenced by strategic price cuts and broader economic factors. Financially, Tesla reported a reduction in its automotive gross margin to 17.4%, down from previous quarter, reflecting the impact of significant price reductions across its model lineup intended to stimulate demand amid a softening global market. These price adjustments, while successful in driving a short-term uptick in sales volumes, did not fully counterbalance the revenue per unit loss, leading to an overall revenue of $21.3 billion and earnings per share (EPS) of $0.45, both figures below analyst expectations. Quarterly revenue and deliveries were the lowest since 2022. One of the bright spots has been Tesla’s efforts to control costs. Not only did the company recently announce layoffs. It also stated that it would slow the growth of its Supercharger network to bring costs under control. Moreover, investors were not as concerned about the concerning financials following the investor call where Musk re-affirmed Tesla’s long-term strategy while maintaining that Tesla would remain lean by producing the new lineup on existing manufacturing lines, assuaging fears of spiraling costs. Critical to note that it is not just Tesla which struggled in Q1. BYD also reported that its profits fell 47% YoY. Vehicle sales also slowed QoQ. It is the wider industry that is experiencing a slowdown. Unfortunately for Tesla, margin compression is more concerning for it compared to its Chinese competitors. Particularly as Chinese manufacturers are able to keep costs lower with help from government subsidies. Not only does the Chinese government offer direct subsidies to manufacturers, it also offers subsidies for EV buyers in China which has led to a boom in EV sales, which has benefited Chinese EV manufacturers. Economic slowdown from high interest rates and a domestic slowdown in China may keep EV sales subdued for some time. In which case, Tesla would be forced to continue with its price cuts which would continue to pressure margins. TESLA'S FINANCES STRAINED UNTIL AFFORDABLE MODEL LAUNCH With recent positive news, Tesla stock has recovered sharply. Yet, it remains one of the worst performing stocks in the S&P 500 YTD. Bearish clouds persist for Tesla as margin compression continues due to competitive price cuts by Tesla. Amid an industry-wide sales slowdown, Tesla may be forced to continue with its strategy to offer price discounts on its cars, keeping its margins pressured. Moreover, Tesla continues to face pressure from low-cost Chinese EVs until it can launch its own low cost models. While, Tesla’s new models are expected sooner than expected, they are still several quarters away. In the meantime, fundamental factors are likely to continue impacting Tesla’s profitability and subsequently its stock.
Editors' picks
NASDAQ:TSLA
by mintdotfinance
22
Samsung is Integrating Baidu's Ernie Bot to Catapult Galaxy S24 In a strategic maneuver to overcome the challenges posed by the Chinese government's stringent restrictions on Google services, Samsung Electronics Co. has chosen to collaborate with Baidu Inc., ( NASDAQ:BIDU ) integrating the renowned Ernie Bot into its upcoming Galaxy S24 smartphone series for the Chinese market. This groundbreaking partnership marks a pivotal moment for Samsung, positioning the Galaxy S24 as the vanguard of a new era of AI smartphones tailored for the Chinese audience. The integration of Baidu's ( NASDAQ:BIDU ) Ernie Bot is set to redefine the user experience by offering advanced AI functionalities, including text summarization, organization, translation, and the innovative "circle to search" feature. Baidu's ( NASDAQ:BIDU ) artificial intelligence tools are expected to seamlessly handle tasks involving vast amounts of information, streamlining user interactions and enhancing overall device performance. The move to include Ernie Bot also addresses the absence of Google services, crucial for AI functionalities in the international version of the Galaxy S24. One of the standout features of the collaboration is the incorporation of visual search capabilities within the chatbot, allowing users to explore the internet for items using photos or images. This not only adds a layer of convenience for users but also aligns with the growing trend of integrating visual AI solutions into smartphones. Samsung's decision to leverage Baidu's ( NASDAQ:BIDU ) AI prowess is a direct response to the challenges posed by the Chinese government's restrictions on major Google services. Despite holding a relatively modest market share in China (1-2%), Samsung aims to carve a significant niche by embracing local solutions, thereby ensuring compliance with regulatory requirements and fostering a more tailored user experience. The Chinese market, known for its unique preferences and regulations, has become a battleground for smartphone manufacturers seeking to establish a foothold. Samsung's adoption of Baidu's ( NASDAQ:BIDU ) Ernie Bot represents a strategic pivot, as it not only addresses regulatory constraints but also positions the Galaxy S24 as a tech-savvy, locally compliant smartphone. By embracing this collaboration, Samsung hopes to not only boost sales in the Chinese market but also resonate with a broader audience, potentially attracting new customers who prioritize seamless AI interactions. The integration of Ernie Bot into the Galaxy S24 showcases Samsung's commitment to adapting to regional nuances, acknowledging the importance of aligning with local tech ecosystems for sustained success. As the Galaxy S24 hits the shelves, all eyes will be on Samsung to observe how this innovative partnership unfolds and whether it indeed propels the smartphone giant to new heights in the competitive Chinese market.
NASDAQ:BIDU
by DEXWireNews
Baidu's Ernie Bot Surges, Signaling Growth Potential for $BIDU Baidu, the Chinese tech giant, has made significant strides with its Large Language Model (LLM), Ernie Bot, challenging OpenAI's ChatGPT for supremacy. The recent milestone achievement of surpassing 100 million users highlights the growing influence and potential of Baidu's AI endeavors. This article explores Baidu's journey in the AI market, the success of Ernie Bot, and why investors should consider BIDU as a compelling investment opportunity. Baidu's Resilience in the AI Market: Despite the initial skepticism surrounding Ernie Bot's launch in March 2023, Baidu has demonstrated resilience and maintained its first-mover advantage in the saturated AI market. Analysts acknowledge that Baidu's ability to weather the initial challenges positions it as a key player, especially with the emergence of other Chinese tech companies in the AI sector. Ernie Bot's Rapid User Base Expansion: Ernie Bot's user base experienced a monumental surge, reaching over 100 million users within months of its public launch in August. This remarkable growth is a testament to the chatbot's widespread acceptance and adoption. Wang Haifeng, CTO at Baidu, emphasized this achievement, signaling a positive trajectory for the company's AI initiatives. Competing Globally, Leading Locally: In the race for AI supremacy, Baidu's Ernie Bot has not only become a global contender but has also solidified its position as the leader in the Chinese market. SuperCLUE's recent report, ranking generative AI-powered chatbots, revealed that Ernie Bot scored an impressive 79.02, outpacing other competitors in the Chinese market. While trailing OpenAI's ChatGPT by ten points, Ernie Bot's dominance at the domestic level is undeniable. Baidu's Strategic Response to Market Dynamics: Baidu's strategic response to the evolving AI landscape has positioned the company as a forward-thinking player. With Ernie Bot at the forefront, Baidu continues to invest in the growth and development of its generative AI capabilities. This commitment to innovation is a crucial factor for investors looking to capitalize on the future potential of the AI market. What Makes NASDAQ:BIDU a Buy 1. Market Leadership in China: Baidu's stronghold in the Chinese market, as indicated by Ernie Bot's impressive SuperCLUE ranking, provides a unique investment opportunity for those seeking exposure to the burgeoning AI sector in China. 2. User Base Expansion: The rapid expansion of Ernie Bot's user base to over 100 million within a short span underscores the market's acceptance of Baidu's AI offerings, boding well for the company's revenue growth. 3. Strategic Advantage: Baidu's resilience and ability to maintain a competitive edge in the face of emerging players in the AI market position it as a strategic investment choice. 4. Innovation Pipeline: Baidu's commitment to fostering AI development signals a continuous pipeline of innovative products and services, which can potentially drive future revenue growth. As Baidu's Ernie Bot continues to make waves in the AI industry, investors are presented with a compelling opportunity to capitalize on the company's growth trajectory. With a resilient market position, rapid user base expansion, and a strategic focus on innovation, Baidu ( NASDAQ:BIDU ) emerges as a strong contender for those looking to invest in the future of artificial intelligence.
NASDAQ:BIDULong
by DEXWireNews
BIDU Baidu Options Ahead of EarningsIf you haven`t sold BIDU`s top: nor the previous ER: Then analyzing the options chain and the chart patterns of BIDU Baidu prior to the earnings report this week, I would consider purchasing the 105usd strike price in the in the money Calls with an expiration date of 2024-6-21, for a premium of approximately $16.90. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. Looking forward to read your opinion about it.
NASDAQ:BIDULong
by TopgOptions
Baidu Posts Better-Than-Expected EarningsBIDU stock rose early Tuesday, after Chinese internet giant Baidu (BIDU) reported earnings and sales ahead of expectations for its third quarter. For the three months ending Sept. 30, Baidu said it earned an adjusted $2.80 per share, ahead of analysts expectations of $2.39 per share, according to FactSet. Meanwhile, sales climbed 6% year over year to RMB 34.4 billion ($4.7 billon), topping expectations of RMB 34.2 billion. In premarket trading on the stock market today, American-listed BIDU stock was up 1.2% at 112.65 in recent action. BIDU Stock: AI Push Baidu, which operates the second-largest search engine in the world, said average monthly active users for its app reached 663 million in September, up 5% from the same period last year. Online advertising revenue climbed 5% in local currency, totaling $2.7 billion. In October, Baidu launched the latest version of it Ernie artificial intelligence chatbot. The company credited its AI efforts with helping its results for the quarter. AI tools have been integrated within Baidu's consumer and enterprise products. Price Momentum BIDU is trading in the middle of its 52-week range and below its 200-day simple moving average. What does this mean? Investors are still evaluating the share price, but the stock still appears to have some downward momentum. This is a neutral sign for the stock's future value.
NASDAQ:BIDULong
by DEXWireNews
BIDU Baidu Options Ahead of EarningsIf you haven`t sold BIDU here: or reentered on this dip: Then analyzing the options chain and the chart patterns of BIDU Baidu prior to the earnings report this week, I would consider purchasing the 115usd strike price Puts with an expiration date of 2024-3-15, for a premium of approximately $10.30. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. Looking forward to read your opinion about it.
NASDAQ:BIDUShort
by TopgOptions
Baidu Potential for Bullish Continuation| 19th January 2023Looking at the Daily chart , my overall bias for BIDU is bullish due to the current price being above the Ichimoku cloud , indicating a bullish market. Looking for a pullback buy entry at 124.11, where the overlap support and 50% Fibonacci line is. Stop loss will be at 107.23, where the recent swing low and 38.2% Fibonacci line is. Take profit will be at 155.48, where the previous swing high is. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary, and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interest arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed on the website.
NASDAQ:BIDULong
by Rockqet