BIDU01 trade ideas
Bullish on BiduBidu has 20 billion in cash on balance sheet, and market cap is in the 30s.
Pe is 7s.
The are the google of china, and have robo taxi tech, Ai tech, and a joint venture with a top EV manufacturer Geely.
Its in a down trend now, so buy stops above for anyone interested. Im going long calls for jan.
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?
$81.73 buy BiduBidu is the Google of China, currently trading at a P/E ratio of just over 10.
They are also at the forefront of self driving technology, rapidly expanding in China, their technology is far more advanced than Tesla’s
Share price is at multi year lows and as can be seen on the chart at multi year support levels.
I expect considerable upside in the coming months
$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
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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
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8/23/24 - $bidu - bai du or not du bai? 8/23/24 :: VROCKSTAR :: NASDAQ:BIDU
bai du or not du bai?
- of the (too many) chinese stonks you can buy today, this is one that should be on your watchlist if nothing else. ( NYSE:BABA , NASDAQ:PDD , NYSE:VIPS , NASDAQ:JD and NASDAQ:BIDU for example).
- cash generative. even in a depressed local context, they still do 12.5% yield on EV (a far cry from the 50% that NYSE:VIPS does!) but part of that is size factor.
- PE (adjust for cash in the "P" so if enterprise value is 24 bn and mcap is 32 bn... multiply the $85/share by 24/32 or 75% to get $64) ... would be about 6+ x on the current year's $10 EPS and nearer to mid 5x's next year's $11.5+ EPS. a lot of chinese stocks are trading like depressed commodities.
- i don't LOVE the fact that they aren't really growing much. in fact, that's the key thing the market pays for today. but consider where china is in the cycle and how much trust we have that these things don't get USSA'd in the wrong moment. that's why there's such a heady discount. and it is a tough one to underwrite.
- personally in this (US) risk market, i've tended to prioritize fewer positions and trading spots. simplification is how i address uncertain environments. i tend to pick only a handful (at most) of things i know well, have an edge, and where i think there's great value. for now that's been OTC:GDLC and NASDAQ:NXT (and to a slightly lesser extent b/c the multiple remains rich NASDAQ:CELH ). i've been happy to play some EPS results. still batting well this 2Q (a few misses - but that's part of the game), but generally recycling this back into cash, the next smallish play, or consolidating it into these above positions I like. I did the same with NYSE:VIPS the other day. I don't own it anymore.
- so in the grand scheme of things, if your personality isn't like mine and having 20 positions in your PnL isn't distracting, i'd defn put a little chinese exposure in there. just enough for it to matter if/when they start to move where you don't feel fomo to add immediately and can decide to add on subsequent pullback. but not too much where if we see a leg down in global risk (which is still how i'm personally positioned) you feel the urge to cut size as opposed to add. i'm only looking to add positions to my PnL today where i feel comfortable w/ the size that i can add and have ammo to do so.
- one way to do the above, i've found, is to figure out what is the size you feel "indifferent" owning it if it goes up or down 10% you're equally "happy". in that situation, sizing, you start to take emotion out of the equation a bit more. while i'm on the topic, and exhausting my words here I'll give you one example in the OTC:GDLC example.
- so OTC:GDLC still trades at at 35% discount to BTC. if BTC does undergo a correction to the 40k's you better believe this probably still trades 35 or even 40% discount. it may not, but in that scenario where it does (b/c it has in the past done this as BTC goes down), i've decided i'll want to be at a 75-80% position size (so i'll need cash and a simplified book to execute this quickly). in the event we end up in a few months (call it 6 months) toward the 90-100k level and the discount is closer to 10%, i'd want to be at about 25-30% position size. so today... we're in the middle w more uncertainty. and as such i'm not 75%, i'm not 25%... size is 45% (could justify 50%, but again i've decided on more cash into today/ next week specifically).
- so back to $bidu. is it more of a buy? yes. is it something i'd personally feel comfortable making a 2-3% position? no. but could i ride with 50 bps in an all else equal risk on and supplement with 1% baba, 1% pdd and so on so i get to chinese stocks being 4-5% of my book? yeah defn. just the time for me is not right "now now".
- LMK what you think. that was a long one. hope it helps elaborate on my thought process a bit more.
- let's see what papa powell has for us plebs today.
V
Baidu Reports Q2 Results Shares Down 1.33% in Premarket TradingBaidu (NASDAQ: NASDAQ:BIDU ), the Chinese tech giant known for its dominance in internet search, recently reported its second-quarter earnings for 2024, presenting a mixed picture that underscores both the challenges and opportunities facing the company. While Baidu (NASDAQ: NASDAQ:BIDU ) managed to surpass earnings expectations, the company’s flat revenue growth and decline in net income reflect broader economic headwinds in China, particularly in the digital advertising sector.
Economic Slowdown Dampens Ad Revenue
For the quarter ending in June, Baidu’s revenue remained largely stagnant at 33.93 billion yuan ($4.67 billion), just slightly above the analyst consensus of 33.55 billion yuan. This flat growth is primarily due to a 2% decline in Baidu’s online marketing revenue, which fell to 19.2 billion yuan. The drop in ad spending is indicative of the ongoing economic challenges in China, where a sluggish recovery from a property market slump has led many advertisers to tighten their budgets. The economic slowdown has weighed heavily on Baidu, which, like Google in the U.S., relies heavily on digital advertising for a significant portion of its revenue.
Net income for the quarter also declined, falling by 8% to 7.4 billion yuan. However, this was still better than the expected 6.45 billion yuan, showcasing Baidu's ability to manage costs and maintain profitability in a tough market environment. Despite these challenges, Baidu’s U.S.-listed shares were up over 1% in premarket trading, signaling cautious optimism among investors.
Strategic Shift Towards AI and Autonomous Vehicles
Amid these economic challenges, Baidu has been aggressively pivoting towards artificial intelligence and autonomous vehicles, sectors that it believes will drive future growth. The company has branded itself as an “AI company,” and its investments in this area are starting to bear fruit. Baidu’s large language model platform, Ernie, which is touted as a rival to OpenAI’s GPT, has been integrated into various app services to enhance user experience. Baidu has also launched a paid version of its Ernie-powered chatbot for public use, as well as API services for developers through its cloud computing platform.
Another significant area of investment is Baidu’s autonomous vehicle division. The company’s Apollo Go robotaxi service now operates in several Chinese cities, with the largest fleet of 500 vehicles in Wuhan. While this division is not yet a significant revenue driver, Baidu has ambitious plans for growth. The company expects its Wuhan operations to reach break-even by the end of 2024, signaling a potential turning point for its autonomous driving initiatives.
Stock Performance and Market Position
Despite these efforts, Baidu’s stock performance has been lackluster. Year-to-date, Baidu shares are down 25%, reflecting broader investor concerns about the company’s growth prospects in a slowing economy. The stock is also down nearly 30% compared to a year ago. Baidu’s IBD Composite Rating of 43 and Relative Strength Rating of 14 out of 99 further highlight its struggles in outperforming the broader market.
However, there are reasons for cautious optimism. Baidu’s continued investment in AI and autonomous vehicles positions it well for long-term growth, particularly as these sectors mature. The company’s ability to beat earnings expectations, despite economic headwinds, also suggests that it is managing its business efficiently.
Conclusion
Baidu’s second-quarter earnings report is a reflection of the broader challenges facing the Chinese economy and the digital advertising sector. While the company’s revenue growth remains flat, its strategic investments in AI and autonomous vehicles offer a glimpse of potential future growth drivers. Investors will be closely watching Baidu’s ability to navigate the current economic environment while continuing to innovate and expand into new markets. As China’s economy stabilizes, Baidu’s focus on AI could very well pay off, positioning the company as a leader in the next wave of technological advancement.
Baidu Approaching Ichimoku Cloud ResistanceBaidu Approaching Ichimoku Cloud Resistance
Upcoming Earnings:
Baidu, Inc. (ticker: BIDU) is scheduled to report earnings before the market opens on 22 August. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is US$2.24. The reported EPS for the same quarter a year prior was US$2.51.
Sell On-Rally Scenario at Ichimoku Cloud Resistance?
Even with a basic understanding of chart analysis, it is clear that Baidu has been entrenched in a downtrend since early 2023, made up of clear lower lows and lower highs.
Since the Leading Span A (light green at US$86.76) crossed below the Leading Span B (light orange at US$92.19), it has provided investors with an Ichimoku Cloud resistance to work with, which held firm in mid-July. While price is now trading above the Conversion Line (blue at US$86.11) and, recently, above the Base Line (red at US$87.41), the stock is nearing a second test of the Ichimoku Cloud Resistance. However, it must be noted that the chart has yet to see the Conversion Line cross back above the Base Line, a move that would be considered a bullish signal by some Ichimoku traders.
Price Direction
Given the downtrend and price nearing the Ichimoku Cloud, sellers may look for shorting opportunities around the Ichimoku Cloud if tested. Some investors may opt to wait for additional confirmation in the form of the Conversion Line crossing back under the Base Line (by the time price tests the Ichimoku Cloud, the Conversion Line would have crossed above the Base Line).
Decisive moment for BIDU (!)(?) People are looking for a bottom in BIDU. Monthly/weekly chart provides the basis for an idea. What the macro-picture says, is another business. China vs. US, Trump vs. Kamala, tech-giants and so forth...fear of accidents i believe to be overdramatic, and mainly caused by its newness and uncertainty for ones everyday life. Not to say it doesnt matter. Replacing jobs however...anybody with some realistic numbers and timeframe, with corresponding consequences?
My scenario, bottoming out somewhere from todays level down to 70s. If not, it could be a roller coaster down to sub 50s. Would love to see some stable price-action in 80s on rising (rel. higher) volume.
Looking more short term, im betting on the RSI/price divergence we are seeing in June/July.
Bidu bounce incomingBidu has been in a falling wedge and is currently at a support level that has held multiple times in the past. I believe next week after tech earnings are out the market will relax and this stock will bounce well. I bought call contracts!
BIDU is undervalued!NASDAQ:BIDU is a strong buy right now, as it's oversold according to all indicators.
Is Baidu the next robotaxi move?Move over, Silicon Valley! China's Baidu is quietly making waves in the robotaxi scene, and they might be the dark horse you haven't heard about yet.
Check This Out:
Robotaxis on the Streets: Baidu's Apollo Go robotaxis are already picking up passengers in Wuhan, China, with over 6,000 driverless rides per day! 🤯
Making Money Moves: Baidu expects to start turning a profit with their robotaxi service by the end of the year. That's impressive for a relatively new technology.
Dropping Costs: They're getting more efficient with their operations, so costs are expected to drop even further, making their robotaxis even more competitive.
Wall Street's Whispering: Baidu's stock has been climbing lately, a sign that investors are starting to see the potential of this Chinese tech giant.
The Bottom Line:
Baidu might not be as flashy as Waymo or Tesla, but they're quietly making major strides in the robotaxi world. Their stock is looking pretty tempting right now, especially with all this potential for growth. If you're looking for a robotaxi stock to watch, Baidu might just be your hidden gem.
levels to manage $BIDU long-term positions In the last 3 months, 16 ranked analysts set 12-month price targets for BIDU. The average price target among the analysts is $145.21. Analysts compare their price target to the current market price of the stock to determine how much potential upside or downside movement there could be in the stock price.
Who will be the King of Road in the next 5-10 years ?If you have not had a chance of taking a driverless taxi or robotaxi as it is commonly known, then you may be in for a culture shock when you take one. It's like an invisible driver seating in front of you, keeping his mouth shut and focus exclusively on bringing you from one point to another.
Just like Uber, Grab, Lyft initially, they burnt cash to grab market shares. A 45 mins drive in Wuhan, China costs only less than 12 RMB , slashing the prices of the human taxis by a lot. Already, these drivers are protesting for their rice bowl and I believe if this trend continues, more cities will adopt this technology and these drivers will become jobless.
I will likely nibble some Baidu shares when it retraces today !
Baidu Ready to Take Off
Baidu, like many other China-based companies, has been in a long downturn. However, China is showing signs of economic recovery and this could be a bullish sign for China's largest companies.
Another sign is that the stock is bouncing off a support that has been tested many times. If this support holds, Baidu could be a good investment for the next 2-3 years.
Why I am not buying Baidu ?as you can see , it is still within the bearish channel, no indication of trend reversal pattern. So what's the hurry? It might goes lower. To me, TA is reactive, our roles should be when this pattern emerges, what am I going to do? Let your research work - fundamentals secure you on the selection process. Everyone uses different metrics.....
Could it revisits its Oct 22 low of 73 price level ? I doubt so but it is possible so let the chart plays out and then decide the next course of action. Our role is not to predict how the patterns will play out using our preferred imagination , confirmation biases , etc and disillusioned our mind. Like I said, buying the stock takes less than 30 seconds but once it is purchased, you have to watch it grow either upwards, sideway or downwards. Over time, this will affect your mood as you either see profits, stagnant or losses.
The blame game starts why didn't I ? So rather than regrets , it is wiser to be discipline to do all the preparation work. And no need to worry too much about missing the boat, the market always offer opportunities for you to get in, maybe not at rock bottom but is better to ride the right trend than to buy at cheapest and hold on for months/years before it rallys. Opportunity costs !
Baidu - how much lower?Baidu looks like it’s breaking a local downtrend, confirmation would be a break out of this descending wedge. Whilst US stocks are dropping today, Chinese stocks are showing signs of putting in a local bottom.
I went long at $90 and moved my stop loss at break even. I expect Baidu to start outperforming the US AI names over the coming months.
Baidu bragging about new IA modelHello Traders,
Today I want to pitch you a very interesting idea!
Baidu (Ticker AT:BIDU.US) the famous "Chinese Google" is going to die with the AI market and has launched its Ernier 4.0 model being cheaper than OpenAI's GPT4 model. $4.13/million vs $5/million.
Why might we be interested?
Although it is one of the Chinese companies with the highest risk premium in the market, it is trading at very interesting prices and I think it's worth a look
It is currently trading at $88.03 with a low of $73.62. Since the tech war China has set out to replicate everything the west has for their country and it is possible that now is the time to see a recovery.
Its RSI is around the average and its bell shape marks a directionality of the control point (POC) around $105 so we could see a revaluation in the short term.
What do you think, do you think that it can eat the toast of the West?
Write below in the comments!
Ion Jauregui - Analyst ActivTrades
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$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?
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.
Trading is like a game of Monopoly—there's strategy, luck, and sometimes you end up in jail! 🎲 Always consult with a financial advisor and do your own research before making any big moves.
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.
