Bull of the Day: Baidu (BIDU)

Zacks Rank #1 stock (Strong Buy) Baidu (BIDU) is a Chinese-language internet search provider based in Beijing. Baidu is the largest internet search provider in China. Like its American counterpart, Alphabet (GOOGL), Baidu offers a plethora of services beyond traditional search, including maps, online communities, an encyclopedia, and a cloud-based storage service.ERNIE Bot: The AI Leader in ChinaThough the United States still leads the AI race (albeit by a small margin), China is closing the gap. In addition, Baidu and other Chinese tech companies do not have to worry about foreign competition. Baidu introduced its AI chatbot through the ERNIE large language model (LLM) in 2023. Since then, the ERNIE platform has reached 300 million users during March 2025 while integrating with Samsung’s Galaxy S24 operating system in China.Baidu Scores Apple PartnershipEarlier this year, Apple (AAPL) announced that it would be working with Baidu to work on AI search features for image and text processing, for its Chinese Siri as part of Apple’s “China Intelligence” initiative. Considering that Apple likely consulted with many Chinese companies, yet chose Baidu, is telling.Apollo Go: The Largest Fleet of Robotaxis WorldwideWhile many investors focus on the battle for robotaxi supremacy stateside between Tesla (TSLA) and Google’s Waymo, they are still very much in their infancy, with Waymo operating a small fleet in a handful of US cities and Tesla set to launch this summer in Austin. Conversely, Baidu’s “Apollo Go” has already achieved significant success in China and is in the process of expanding globally. Apollo Go provided more than 1.1 million rides in Q4 and a total of more than 9 million since inception. Baidu has attained permits in several Chinese cities and is expanding to countries like Dubai. As Baidu scales Apollo Go, it will be able to provide safer rides with its massive autonomous driving track record and reduce costs.Baidu Beats ExpectationsDespite the successful launch of the “Ernie Bot” and Baidu’s rapidly growing autonomous taxi fleet, Wall Street analysts have been underestimating Baidu’s EPS potential recently by a wide margin. Last quarter, BIDU beat Zacks Consensus Estimates by a healthy 47.75%. Meanwhile, BIDU has beat analyst estimates by an average of 19.11% over the past four quarters.Image Source: Zacks Investment ResearchValuation Lowest in History From a price-to-sales perspective, Baidu’s valuation is nearly the lowest it has been since inception.Image Source: Zacks Investment ResearchTechnical ViewBIDU recently broke out of a bullish inverse head and shoulders pattern. Meanwhile, shares have recaptured the 200-day moving average, signaling a long-term trend change.Image Source: TradingViewBottom LineBaidu’s advancements in AI, strategic partnerships like the one with Apple, and the impressive growth of its Apollo Go robotaxi service, highlight its strong growth potential.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks