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Baidu: Historical Support At $80

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Updated - Nov. 15, 2024

Despite leadership in AI and robotaxis in China, Baidu trades right back down to historical support around $80. The stock has now dipped $30 following the volatile move on hope for the Chinese government to fully stimulate the economy. 

Finviz Chart


Update - Aug. 22, 2024

Baidu didn't report anything impressive from robotaxis or AI yet during Q2. The big robotaxi ramp up in Wuhan hasn't started yet. The stock did hold the key $80 support level. 

  • Q2 Non-GAAP EPADS of $2.89 beats by $0.29.
  • Revenue of $4.67B (flat Y/Y) misses by $70M.
  • Adjusted EBITDA was $1.26 billion and adjusted EBITDA margin was 27%. 
  • Adjusted EBITDA for Baidu Core was $1.19 billion and adjusted EBITDA margin for Baidu Core was 32%.
  • Free cash flow was $862 million, and free cash flow excluding iQIYI was $810 million.

Finviz Chart

Original article posted on Aug. 18

  • 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.
  • Baidu has had strong support at $80 going back over a decade.
Baidu, Inc. (NASDAQ:BIDU) (OTC:BAIDF) has been one of the most promising tech stocks for going on a decade now. Despite large stock gains at times, the Chinese Search leader now trades back to levels seen in early 2011. My investment thesis is ultra-Bullish on the Chinese tech giant due to the strong growth catalysts and the technical support around the current price on a long-term chart.

Read the full article on Seeking Alpha. 

Disclosure: Long BIDU. Please review the disclaimer page for more details. 

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