$BIDU - Would you bet on a bounce?NASDAQ:BIDU hasn't broken below the current support area since 2013.
Would you bet on a bounce?
BIDU trade ideas
BAIDU Long PositionHi traders,
Taking a closer look at Baidu, Inc. (BIDU), we can observe the formation of a falling wedge pattern over the past few weeks, indicating a potential bullish reversal.
Baidu, often referred to as the Google of China, is a leading internet services and artificial intelligence company. Despite recent market challenges, Baidu's robust technology and strategic initiatives in AI and autonomous driving continue to strengthen its position in the industry.
The falling wedge pattern is characterized by converging trendlines, where both the highs and the lows are declining, but the highs are falling faster than the lows, forming a wedge shape that slopes downwards. This pattern often signals a potential reversal from a downtrend to an uptrend.
As BIDU approaches the apex of the falling wedge, a breakout above the upper trendline could confirm the bullish reversal. Entering a long position upon confirmation of the breakout appears favourable.
1st Take Profit: 119.58
2nd Take Profit: 136.57
Final Target: 159.69
Trade Idea: Long on Baidu (BIDU) Overview:
Baidu (BIDU), a leading Chinese tech giant, is currently sitting at multi-year lows. Despite the broader Chinese economy facing challenges, Baidu presents a compelling opportunity due to its strong correlation with the overall Chinese market. The attached chart highlights this correlation, showing BIDU's performance in tandem with the Chinese economy's trends.
Valuation Comparison:
In a market where NVIDIA’s valuation surpasses the combined worth of Germany's and General Motors', opportunities in the Chinese market appear more reasonable. Baidu, with its substantial undervaluation, offers a potential upside that is hard to ignore.
Technological Edge:
A recent study by International Data Corporation (IDC) underscores Baidu's prowess in generative artificial intelligence (GenAI). Baidu’s Wenxin Yiyan and Wenxin Yige, comparable to ChatGPT and Midjourney, respectively, outperformed in categories like question-and-answer comprehension, reasoning, creative expression, mathematics, and coding. This technological advantage positions Baidu as a leader in AI, a crucial growth sector.
Conclusion:
With Baidu trading at significant lows and its robust performance in GenAI, the company is poised for potential growth. The Chinese market, despite its current economic hurdles, offers more attractive valuations compared to the overheated US tech market. This creates a strategic entry point for long positions in BIDU.
This overview provides a snapshot of Baidu’s potential as a strategic investment. If you’re interested in a deeper analysis, drop a comment below, and I’ll prepare a more detailed breakdown.
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9888 (BIDU) - Breakout and Bullish Retest9888 (BIDU) broke out and successfully retested on confluence of 0.786 fib and trendline support.
This was after the rejection off the 200 day moving average, which is a healthy pullback for a solid entry.
Hang Seng Index (HSI) also bounced off VWAP support today after catching a short break from a massive (and expected) run up.
Technicals aside, the fact that BIDU is trading near book value calls for an opportunity for any well-diversified investor. A good entry is simply icing on the cake.
Easy buy, both as a trade or an investment position.
BIDU - A potential setup for a swing tradeRemain vigilant for daily reversal candles occurring near the support area. In the event of a daily closing breach of the support levels (red lines), there is a possibility of further downward movement, emphasizing the importance of implementing risk management strategies.
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.
BIDU Baidu Options Ahead of Earnings If you haven`t bought the dip on BIDU:
Then Analyzing the options chain and the chart patterns of BIDU Baidu prior to the earnings report this week,
I would consider purchasing the 120usd strike price Calls with
an expiration date of 2024-6-21,
for a premium of approximately $2.47.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Ichimoku Watch: Baidu Poised to Push NorthUpcoming Earnings Release:
Baidu, Inc. ADS (ticker: BIDU) is scheduled to report earnings on 16 May before the market opens. The consensus EPS estimate for the fiscal quarter ending March 2024 is $1.90. The reported EPS for the same quarter a year prior was $1.81.
Bulls Starting to Show Ahead of Earnings
There is some interesting price action on the daily chart of Baidu ahead of the company’s earnings release this week.
It would appear buyers are beginning to show. Price action recently moved above the Ichimoku Cloud (the difference between Leading Span A and Leading Span B), reaching a high of $115.39 last week before moderately forming a correction. It can also be seen that price dropped back below the conversion line, but remains above the base line and is almost level with the Lagging Span.
The Leading Span A also recently crossed above the Leading Span B to form potential Cloud support around $106. And by and of itself, this crossover is a bullish trend signal. Overall, though, price action has not confirmed a trend change yet (we have not seen price action form a higher low and a subsequent higher high), though the Ichimoku Indicator has, as mentioned above, given us an early cue that the tide may be changing.
Adding to this, we can see that price recently broke above the upper level of a falling wedge pattern ($126.23 and $103.37). While there is generally no textbook definition for setting profit targets regarding this pattern, some traders opt to target the base value extended from the breakout location, which comes in at around $127.16.
Price Direction?
With everything taken into consideration, the area formed between the breached upper boundary of the falling wedge and the Ichimoku Cloud may offer support for buyers in the coming days to potentially form a higher low and push on to a higher high and confirm the uptrend.
BIDU 05/17/2024 $110 PUT BIDU May 17, 2024 $110 PUT
The image of this pattern symbol tell us that it is about to down so buy the PUT. Expired before May 17th.
What do you think? Please command this.
Tesla Collaborate With Baidu to Allow Self-Driving Mode in ChinaTesla ( NASDAQ:TSLA ) has reportedly struck a deal with Baidu ( NASDAQ:BIDU ), China's leading search engine, to enable its Full Self-Driving (FSD) system in the country. The agreement, which grants Tesla access to Baidu's mapping license for data collection on Chinese roads, marks a pivotal moment in Tesla's expansion efforts in the world's largest automotive market.
The deal, recently finalized, signals a strategic move for Tesla CEO Elon Musk, who has been actively seeking regulatory approvals for the FSD software rollout in China during his recent visit to the country. With Baidu's lane-level navigation system also included in the agreement, Tesla ( NASDAQ:TSLA ) is poised to leverage Baidu's extensive mapping expertise to enhance its autonomous driving capabilities.
In China, where stringent regulations govern intelligent driving systems, the acquisition of a mapping qualification is a prerequisite for operating on public roads. By partnering with Baidu ( NASDAQ:BIDU ), Tesla gains access to crucial mapping data necessary for its FSD software to function effectively and legally in the Chinese market. Moreover, Tesla's fleets will now be able to gather valuable data about their surroundings, contributing to the refinement of autonomous driving technology.
While the specifics of data ownership remain unclear, the collaboration underscores the growing synergy between Tesla ( NASDAQ:TSLA ) and Baidu ( NASDAQ:BIDU ) in advancing self-driving technology. Notably, this partnership builds upon their existing relationship established in early 2020 when Tesla began incorporating Baidu's navigation map into its vehicles in China.
Although the announcement of the collaboration came during a broader news conference by Baidu ( NASDAQ:BIDU ) and did not explicitly mention the FSD feature, the implications for Tesla's expansion in China are substantial.
Technical Outlook
Baidu Inc. ( NASDAQ:BIDU ) stock is up 0.62% on Monday's pre-market trading session with the stock closing with a Relative Strength Index (RSI) of 49.31 making it prime for a bullish start for the first day of the week.
However, NASDAQ:BIDU has been trading below the 200-day Moving Average (MA) for over 7 months.
$BIDU - sitting a major multi-YEAR support: Is it time to buy?
BIDU is sitting at multi-YEAR support. Interestingly, $14 million dollars worth of April 19th, 2024 ITM put selling across strikes from $103 to $110 was detected on BlackBoxStocks today suggesting parties. In addition, roughly $80,0000 worth of 4/19/2024 $96 calls was detected. A bounce into declining moving averages is a play. In addition, on the daily chart,
BIDU is sitting at support of a descending triangle (green descending trendline).
$BIDU - Buy the dip at multi-YEAR supportNASDAQ:BIDU is sitting at multi-YEAR support. Interestingly, $14 million dollars worth of April 19th, 2024 ITM put selling across strikes from $103 to $110 was detected on BlackBoxStocks today suggesting parties. In addition, roughly $80,0000 worth of 4/19/2024 $96 calls was detected. A bounce into declining moving averages is a play. In addition, on the daily chart, NASDAQ:BIDU is sitting at support of a descending triangle (green descending trendline).
Bottom HoldingThe February bottom had been broken on the 29th. But now 1 week ago we managed to regain the entrance into the previous range again. The reversal I take as a signal of predominating buying interest now.
BIDU - 1hr chart - great bull setupBIDU has a fantastic chart. I've been steadily accumulating shares around the 100-105 level. Will add options when breakout is confirmed.
Betting on B.A.T shares !I am betting on the Chinese B (Baidu), A (Alibaba) and T (Tencent) shares again , having seen their share prices fallen more than 50% from its peak! This is a long term investment , with time horizon 5 years and more.
Is this the bottom ? I believe so as the Chinese Government is taking this opportunity to shore up its economy and the need to appease to the investing public. But , short term, we may still see some volatility ahead , so do not expect a straight rally up all the time.
BIDUChina's central bank has stepped up measures to support markets. Baidu is one of the best companies to bet on the recovery of the China's economy and in particular the advertising market.
tp1 135
tp2 190
Baidu Revenue Grows 6% in Fourth Quarter Results Baidu Inc. ( NASDAQ:BIDU ) emerges as a beacon of resilience, reporting a commendable 6% increase in revenue for the fourth quarter, propelled by the synergistic forces of artificial intelligence (AI) and advertising prowess.
For the three-month period ending December, Baidu ( NASDAQ:BIDU ) disclosed revenues totaling 34.95 billion yuan ($4.92 billion), a figure that closely aligns with analysts' projections, according to data from LSEG. The company's adjusted net income experienced a notable surge of 44%, reaching 7.76 billion yuan, outstripping analysts' forecasts and marking a significant leap from the previous year's figures.
As China's premier internet search engine, Baidu ( NASDAQ:BIDU ) has long relied on advertising as its primary revenue stream. However, in response to evolving market dynamics and a slowdown in consumer spending, the company has strategically pivoted towards AI-driven initiatives. Notably, Baidu's ( NASDAQ:BIDU ) foray into AI was underscored by the launch of ERNIE Bot, reminiscent of the pioneering ChatGPT technology, aimed at harnessing the transformative potential of AI.
The integration of ERNIE AI services has proven instrumental in augmenting Baidu's revenue streams, signaling a paradigm shift in the company's business model. CEO Robin Li expressed pride in the company's progress, citing significant advancements in product innovation and monetization strategies throughout 2023.
Despite prevailing economic challenges, Baidu's ( NASDAQ:BIDU ) online marketing division demonstrated resilience, achieving a commendable 6% growth in revenue, amounting to 19.2 billion yuan for the quarter. The company's adjusted profit per American Depositary Share (ADS) surged to 21.86 yuan, a marked improvement from the previous year's figure of 15.25 yuan per share.
Investor sentiment remained cautiously optimistic, with Baidu's U.S.-listed shares witnessing a modest uptick of 0.4% in pre-market trading. This incremental gain underscores market confidence in Baidu's ability to navigate turbulent waters and capitalize on emerging opportunities in the digital landscape.
Looking ahead, Baidu's ( NASDAQ:BIDU ) commitment to innovation and strategic diversification bodes well for its long-term growth trajectory. As the company continues to harness the power of AI to drive business outcomes and enhance user experiences, investors eagerly anticipate the unfolding chapters of Baidu's journey in shaping the future of technology and advertising in China and beyond.
Bidu - long idea Dear traders,
Id like to share this idea in order to take long positions, basically the price is in a strong support level around 100$.
95- 105$ is is a good price range to look for buying opportunities.
Additionally there is also a signal of divergence between RSI and price direction.
best
BIDU Baidu Options Ahead of EarningsIf you haven`t bought the dip on BIDU:
Then analyzing the options chain and the chart patterns of BIDU Baidu prior to the earnings report this week,
I would consider purchasing the 120usd strike price Calls with
an expiration date of 2024-5-17,
for a premium of approximately $6.75.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
BIDU in WEDGEBIDU seems to me to be inside a wedge
the breakout above approximately 110
would lead to targets towards the upper
resistances 117 first then 125 and 135
otherwise a return towards the minimums
StrugglingThe window that has been opened on January 12th has been closed on 24th January already. This rise has been retraced on February 2nd. Then we saw a Reversal island. The small candles yesterday and today so far are indicating that we are fighting to build a bottom now.
On top there are no real resistances. The former bottom of January 3rd had been broken on the 12th January already and may be seen as a hurdle but not as a high one.
So if we van consolidate at the present levels there may be room until 124 at least.
