2024-04-21 06:23:42 ET
Summary
- Baidu announces 200 million AI chat users on Ernie Bot, but the stock continues to trend lower.
- The company is a leader in the Chinese generative AI market and has multiple paths to success, including a potential deal with Apple.
- The stock only has an EV of just $10 billion after this dip, despite generating nearly $4 billion in FCF last year.
Despite Baidu ( BIDU ) providing more bullish AI data points, the stock continues to trend lower. Chinese stocks remain out of favor, causing valuations to sink to unthinkable levels a few years back. My investment thesis remains ultra-bullish on the Chinese search leader turning into an AI leader, but the catalyst turning the stock market bullish on Baidu is unclear, with AI growth potential not doing the trick so far....
Read the full article on Seeking Alpha
For further details see:
Baidu: AI Boom At Mind Boggling Valuation