Baidu, Inc.

What is BIDU?

Baidu is one of the very few companies in the world that offers a full AI stack, encompassing an infrastructure consists of AI chips, deep learning framework, core AI capabilities, such as natural language processing, knowledge graph, speech recognition, computer vision and augmented reality, as well as an open AI platform to facilitate wide application and use. Baidu has put its leading AI capabilities into our products and services, as well as innovative use cases.

Is BIDU a good pick?

Baidu reported better than expected results in the third quarter of 2021, earnings per share BIDU filed September 2021 $ 1.80, and they were expecting 1.72, 6.45% higher than expected, compared with the third quarter of 2020 was $ 3.05 earnings per share, there was no increase. Baidu reported another solid quarter in the third quarter, with Baidu's core revenue growing 15% year-on-year, driven by AI cloud, growing 73% year-on-year, but the company did not exceed investors’ estimates BIDU reported quarterly revenues of $4.954 billion, below the estimate of $4.97 billion.

Technical analysis

From August 19, 2021 to September 7, 2021, the share price increased by 24%, mainly because the U.S. did not reduce massive financial support. From September 7, 2021 to October 4, 2021, the share price took a downward trend falling -15% after Evergrande announced the aforementioned crisis. The following two weeks, the share price rose 37% to $182.52. On November 5, 2021, BIDU declined by -14% due to an increase in COVID cases and the Asian stocks slided. The following two weeks, it recovered 9% of its value to $173.60 per share because China reporte strong Economic data. From November 17, 2021 to December 3, 2021, BIDU lost -23% of its value due the company reported quarterly revenues of $4.954 billion, below the estimate of $4.97 billion. A week later it recovered 16% due to BIDU presenting an excellent annual earnings report. From December 9, 2021 to December 19, 2021 the share price suffered a -12% decline due high inflation in the U.S. then it recovered 12% but immediately fell 4% to 146.53.

According to current technical indicators, the share price could decrease from -1% to $144.51 touchin 0.236 support and bounce to resistance 0.5 increasing 9% to $157.79 price per share.

Author: Iván Vizcarra (Guía traders´ analyst)

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