2024-05-17 08:30:00 ET
Summary
- Baidu investors have experienced a solid revival as BIDU stock maintained its bullish momentum.
- China has strengthened its property market intervention, suggesting the worst could be over.
- Baidu's Q1 earnings surpassed expectations, but concerns remain about the weak advertising spending in its core business.
- I explain why BIDU's valuation bifurcation has reflected significant pessimism.
- BIDU investors should capitalize on the market's misunderstanding to buy more shares.
Baidu's Q1 Earnings Outperformed
Baidu, Inc. ( BIDU ) investors have enjoyed a revival, as BIDU stock recently re-tested its February 2024 highs. BIDU's post-earnings reaction has remained robust, defended by solid buying sentiments, suggesting its ongoing recovery could resume. Recent data indicate buying from hedge funds belonging to Michael Burry and David Tepper on Chinese equities has improved investor confidence. In addition, sentiment gauges suggest short interest in Chinese equities peaked in April and could spur increased short covering if buying momentum improves further....
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Baidu Q1 Earnings: The Turnaround Is Finally Gaining Momentum