Added to YB: 2024-05-15
Pitch date: 2024-05-14
BIDU [neutral]
Baidu, Inc.
+12.23%
current return
Author Info
@TechFundies has been a tech investor for over 20 years and ran a $1b hedge fund for 10 years. Follow on Twitter.
Company Info
Baidu, Inc. provides online marketing and non-marketing value added services through an internet platform in the People’s Republic of China.
Market Cap
$291.0B
Pitch Price
$111.39
Price Target
223.58 (+79%)
Dividend
N/A
EV/EBITDA
8.25
P/E
36.61
EV/Sales
2.20
Sector
Interactive Media and Services
Category
growth
Baidu's Impressive Financials and the Promise of AI Expansion
BIDU: China's top search engine w/ 700M MAUs. Q4 rev +6% YoY, profit +17%; FY rev +9%, profit +37%. 60% search rev, 40% other. Expects higher margins in '24 despite AI investments. GenAI boosting search queries & ad conversions. AI cloud rev may 3x to multi-billion RMB. Ample GPU chips for 1-2 yrs. Robotaxi rides +49% YoY in Q4, nearing breakeven. $40B mkt cap, $24B net cash/investments, $16B EV = 5x FCF. Offset by ADR risk.
Read full article (2 min)