Baidu Inc – Chart Analysis – Week Ahead

Check out the trade idea of ​​the week below from your friendly neighborhood market analyst!

Trade idea of ​​the week

NASDAQ:BIDU – Baidu Inc

  • Key levels on the chart – consider taking trades from key support/resistance areas.
  • The price is significantly undervalued and at a key support, a level not seen since the start of COVID.
  • There are some striking similarities between Baidu and Alphabet (Google’s parent). Both started out as search engines, but have since grown and expanded their revenue streams exponentially to include mapping, AI, and cloud services, which offer huge opportunities for growth.
  • Baidu Core, which is Baidu’s operating wing and includes its cloud services, AI, mobile ecosystem and intelligent driving initiatives – has struggled to maintain the growth rate needed to keep the share price stable. While the impact of the recent COVID lockdown in China is now being felt in the financial statements.
  • The China State Administration of Market Regulation (CSAMR) has not been supportive of Baidu since the end of 2020 after the start of antitrust, data security and other crackdowns on companies during the COVID period. Baidu joins a list of tech giants that have been penalized for monopolistic business practices amid fears that the companies have too much control over their industries, which appears to be a recurring theme.
  • Although it wasn’t so bad for Baidu as it still remains a fan favorite among major asset managers PRIMECAP Management, Alkeon Capital, Wellington Management, Arrowstreet Capital, Morgan Stanley. assets in your portfolio.
  • As China emerges from its economic recession, we could potentially see a shift in stock prices as some investors may be betting on the success of Baidu’s driverless robot taxi service, Apollo GO, which plans to operate in 65 Chinese cities. until 2025.

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