Posted 2/26/2024, 9:16:56 PM
Baidu Stock Lags Despite AI Strengths; Poised to Rebound on Chatbot and Cloud Growth
- Baidu's stock has underperformed despite strengths in AI, trades at attractive valuation of 11x forward earnings
- Revenue grew 5.9% in 3Q23, AI cloud revenue temporarily slowed but expected to rebound in 4Q
- Ernie chatbot gaining traction and being monetized; AI augmenting search and ads to boost performance
- Optimistic on AI driving future growth and margin expansion from tech gains, though headwinds in near term
- Main risks are geopolitical and regulatory given China internet crackdowns, as well as market share and product risks