Baidu Inc – Chart Analysis – Week Ahead

Check out the business idea of ​​the week below, from your friendly, neighborhood market analyst!

Business idea of ​​the week

NASDAQ: BIDU – Baidu Inc – BULLISH BIAS

  • Consider taking trades from key levels – key support/resistance areas on the chart.
  • The price is significantly undervalued and at a major support, a level not seen since the beginning of COVID.
  • There are some striking similarities between Baidu and Alphabet (parent of Google). Both began their operations as search engines but have since grown and expanded their revenue streams rapidly, expanding into mapping, AI and cloud services that present major opportunities for growth.
  • Baidu Core—which is Baidu’s operating arm and encompasses its cloud services, AI, mobile ecosystem and intelligent driving initiatives—struggled to maintain the growth rate needed to keep the share price stable. The impact of the recent COVID lockdown in China is now being felt in financial statements.
  • China’s State Administration of Market Regulation (CSAMR) has not been too supportive of Baidu as it launched antitrust, data protection and other crackdowns on tech companies after the 2020 post-Covid period. Baidu joins a list of tech giants that have been penalized for monopolistic business practices amid fears these companies have too much control over their industries, which seems to be a recurring theme.
  • It hasn’t been that bad for Baidu though as it still has major asset managers PRIMECAP Management, Alkeon Capital, Wellington Management, Arrowstreet Capital, Morgan Stanley all maintaining their ratings on Baidu, adding to their already large size. Holdings in your portfolio.
  • As China emerges from the economic slowdown, we may begin to see a pivot in share prices as some investors place early bets on the success of Baidu’s driverless robo-taxi service, Apollo GO, which plans to operate in 65 Chinese cities. By 2025.

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