BIDU Stock Recent News

Search engine giant Baidu , reported quarterly revenue above market estimates on Thursday, signaling some recovery in the Chinese advertising market.

BEIJING , Aug. 22, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024. "AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core.

Baidu Inc BIDU will be reporting its second-quarter earnings on Thursday. Wall Street expects $2.76 in EPS and $4.4 billion in revenues as the company reports before market hours.

Baidu's search engine has a huge market share in China. The company is heavily invested in the artificial intelligence industry.

Baidu is undervalued, with an enterprise value of only about $20 billion, while having $20 billion in sales this year. Baidu's trend of exceeding earnings estimates could continue, leading to higher profitability and stock growth. Baidu's potential in autonomous driving, search engine dominance, and AI initiatives could drive significant revenue and profitability growth.

Despite the recent Nasdaq correction, many on Wall Street believe the rally will continue. CrowdStrike Holdings suffered a very public shellacking for starting a global IT meltdown, but many believe this is a buying opportunity.

Baidu trades at levels first seen in 2011 despite strong growth catalysts. The Chinese search leader will report Q2 earnings on August 22, revealing if Apollo Go robotaxis and generative AI can drive revenue growth. The stock trades below 8x '25 EPS targets, while startup units are depressing margins.

Scion Capital increased exposure to Chinese stocks, particularly Baidu, by 54% in Q2 filings. Baidu's revenue growth has been slow, impacted by government policies and global competition and slacking user monetization. Despite Baidu's valuation premium looking enticing, the risks against investing in Baidu is elevated given the slow growth in revenue and earnings.

Baidu is a dominant search engine in China, but its future growth lies in autonomous driving technology. Apollo Go, Baidu's robotaxi service, is expanding and expected to reduce losses in the Intelligent Driving division. Despite short-term challenges, Baidu is expected to continue growing and is trading at a low PE ratio with significant upside potential.

Stock market corrections allow opportunistic long-term investors to pounce on amazing companies at a discounted price. A cash-rich business that's the undisputed leader in internet search in its home market is ripe for the picking.