Baidu (NASDAQ:BIDU) is the dominant search engine in China. The search is not, however, where the future of the business is. Baidu is also the Chinese leader in autonomous driving technology, a market with tremendous growth potential. The company has invested billions of dollars over the years to develop autonomous driving and is now starting to monetise the technology with the expansion of its robotaxi service called Apollo Go. As increasing revenues start covering some of the development expenses, losses ...

Two phenomenal businesses with extremely bright futures are currently valued at single-digit forward-earnings multiples.Over the long run, Wall Street is a wealth-building machine. When compared to other asset classes, such as bonds, housing, and commodities (e.g., oil and gold), nothing comes remotely close to the annualized returns that equities have delivered over the last century.But this doesn't mean stocks move up in a straight line.The first three trading sessions of August featured the growth-stock- ...

These stocks trade at less than 20 times their estimated future profits.Wall Street's price targets aren't a surefire guarantee that a stock is going to reach a certain level. Things can change, and so can price targets. They also only typically look at where a stock might go in the next 12 months; they are by no means long-term indications of where a stock could end up in the long haul.But price targets can be helpful in uncovering stocks that might have a lot of potential to rise higher. Three stocks that ...

Logo on facade of the United States headquarters of Chinese technology company Baidu, among the ... [+] largest Internet companies in the world, in the Silicon Valley town of Sunnyvale, California, October 28, 2018. (Photo by Smith Collection/Gado/Getty Images)Getty ImagesChinese search engine behemoth Baidu’s stock (NASDAQ: BIDU) is poised to report its Q2 2024 earnings around August 22. We expect Baidu’s revenues to come in at $4.7 billion for the quarter, roughly flat compared to last year and in line wi ...

In the latest trading session, Baidu Inc. (BIDU) closed at $83.01, marking a +0.75% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.04% for the day. On the other hand, the Dow registered a gain of 0.76%, and the technology-centric Nasdaq increased by 1.03%.Shares of the web search company witnessed a loss of 6.32% over the previous month, beating the performance of the Computer and Technology sector with its loss of 13.91% and the S&P 500's loss of 6.74%.Analyst ...

Group 1: Investment Opportunities - Investors are seeking undervalued stocks that can appreciate significantly, with potential returns above 50% based on analysts' targets [1] - Bargain stocks have less downside risk compared to high valuation stocks, often representing companies with strong fundamentals temporarily out of favor [1] Group 2: Grab Holdings (GRAB) - Grab Holdings is experiencing rapid growth with a top line growth near 25% and is approaching net profitability [2][3] - The Southeast Asia region, where Grab operates, is expected to see a GDP increase of 4.6% in 2024, providing a favorable environment for growth [2] Group 3: Celsius Holdings (CELH) - Celsius Holdings has shown significant revenue growth from $75 million in 2019 to $1.32 billion in 2023, but its stock has been volatile [5][6] - The company is expected to achieve a top-line growth of 23% in Q2, indicating potential for a bullish position [6] Group 4: Unity Software (U) - Unity Software is trading near its low target price, with potential for 100% returns if it reaches consensus target prices [7] - The company has faced challenges, including an 8% revenue decline in Q1, but has strong partnerships, particularly with Apple [8] Group 5: Snowflake (SNOW) - Snowflake is positioned as a potential bargain stock, with expectations to reach net profitability in 2024 and possible 50% returns [10][11] - The company is focusing on growth under new leadership, despite trimming its operating margin outlook due to rising AI costs [10] Group 6: Nio (NIO) - Nio is projected to double its revenues from $55 billion in 2023 to over $110 billion by 2026, with expectations of per share earnings starting in 2027 [12][13] - The company is addressing competition by introducing a more affordable sub-brand and developing a battery swapping business [13] Group 7: Baidu (BIDU) - Baidu is a leading search platform in China, with significant investments in AI, particularly through its ERNIE language model [15] - Current prices below target lows suggest massive upside potential for Baidu shares as the AI opportunity in China grows [15] Group 8: Wolfspeed (WOLF) - Wolfspeed focuses on silicon carbide and gallium nitride technologies, positioning itself well within the semiconductor sector, particularly for the EV market [16][17] - The expected surge in demand for silicon carbide could benefit Wolfspeed significantly, despite the early stages of technology development [17]

Core Insights - Hesai Technology has been selected by Baidu as the exclusive long-range lidar supplier for its next-generation robotaxi platform Yichi 06, marking a significant partnership in the autonomous vehicle sector [1] - The lidar deal is estimated to be worth between $200 million and $300 million, based on Baidu's plans to deploy 100,000 robotaxi vehicles in China, indicating a major market opportunity [1][2] - The Chinese robotaxi market is projected to exceed $162.6 billion by 2025 and $403.6 billion by 2030, highlighting the growing demand for lidar technology as autonomous vehicle companies seek improved sensor performance [2] Company Performance - Hesai dominated the global robotaxi lidar market in 2023 with a 74% market share of the current $124 million market, showcasing its strong position in the industry [3] - The total lidar shipment volume from Hesai has surpassed 380,000 units as of Q1 2024, reflecting the company's robust production capabilities [3] - Hesai's lidar technology is utilized by nine out of the top ten L4 autonomous driving companies globally, including major players like Zoox, NVIDIA, and Nuro, indicating widespread adoption of its products [3] Product Development - Baidu's sixth-generation Apollo Go robotaxis, which are set to be deployed this year, have seen a 60% reduction in cost compared to the previous generation, now priced around $28,500, making them more accessible [2] - Hesai's lidar products are designed for a variety of applications, including advanced driver assistance systems (ADAS) and autonomous vehicle fleets, as well as robotics applications [4] - The company has established a strong global presence, serving customers in over 40 countries and facilitating collaboration to enhance the safety and reliability of intelligent driving [3][4]

Investment Rating - The investment rating for Baidu (BIDU US) is "Buy" with a target price of $129.00, indicating a potential upside of 37.6% from the current price of $93.73 [1][10]. Core Insights - Baidu's core revenue for Q2 2024 is expected to be 26.4 billion RMB, showing a year-on-year growth of 0.9%. However, the advertising revenue is projected to decline by 3% to 19 billion RMB due to the impact of AI search modifications on traditional ad clicks and weak demand from certain sectors like real estate and automotive [2][3]. - The cloud business is anticipated to maintain a revenue growth of 14% year-on-year, reaching 5.1 billion RMB, driven by increased demand for AI models and API usage [2][3]. - The company is focusing on cost control and operational efficiency, maintaining an adjusted operating profit margin of 25% despite the pressure on advertising revenue [2][3]. Financial Overview - Revenue (in million RMB): - 2022: 123,675 - 2023: 134,598 - 2024E: 138,761 - 2025E: 148,230 - 2026E: 159,279 - Year-on-year growth rates: - 2023: 8.8% - 2024E: 3.1% - 2025E: 6.8% - 2026E: 7.5% [4][11]. - Net profit (in million RMB): - 2022: 20,680 - 2023: 28,747 - 2024E: 27,651 - 2025E: 31,564 - 2026E: 34,592 [4][11]. - Adjusted operating profit margin is projected to be 25% for 2024, with a net profit margin of 19.8% [2][3][4]. Business Developments - Baidu's autonomous driving initiative, "萝卜快跑," is expanding its operations in over 10 cities, with a significant increase in the proportion of driverless rides in Wuhan, expected to reach 100% in the coming quarters [3]. - The company plans to deploy 1,000 units of the new RT6 model in Wuhan by the end of 2024, which is expected to optimize operational costs [3]. Valuation - The target price has been adjusted to $129, corresponding to 11x and 9x P/E ratios for 2024 and 2025, respectively. The current price reflects a P/E ratio of 6.7, which is the lowest in the industry [3][4].

Thanks to generative AI technologies and Nvidia (NASDAQ:NVDA), a chip giant supplying much of the technology required to bring in the AI revolution, AI stocks are a hot commodity this year.Additionally, the technology behind generative AI continues to improve. It now has models that can make high-quality movies and pictures. Applied AI research company, Runway, for example, is leading the way with new generative video models that Paramount Global (NASDAQ:PARA) and Disney (NYSE:DIS) are considering for film ...

Core Viewpoint - Baidu, Inc. is set to report its financial results for the Second Quarter of 2024 on August 22, 2024, before the U.S. market opens, indicating the company's ongoing commitment to transparency and investor communication [1]. Group 1 - The earnings conference call will take place at 8:00 AM U.S. Eastern Time on August 22, 2024, which corresponds to 8:00 PM Beijing Time on the same day [1]. - Pre-registration for the conference call is required, and participants will receive a dial-in number, passcode, and unique access PIN upon registration [1][2]. - A live and archived webcast of the conference call will be available on Baidu's investor relations website [2]. Group 2 - Baidu was founded in 2000 and aims to simplify the complex world through technology, positioning itself as a leading AI company with a strong Internet foundation [3]. - The company trades on Nasdaq under the ticker "BIDU" and on HKEX under "9888," with one Baidu ADS representing eight Class A ordinary shares [3].