not vested
Chinese Stocks to Buy: Baidu (BIDU)
52-week range: $116.41 – 354.82
In its early days, the tech giant Baidu was known for its internet search engine and compared to Google — parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
In the past several years, Baidu has expanded operations especially into artificial intelligence and autonomous driving. It also retains a majority stake in iQIYI (NASDAQ:IQ), the Chinese market leader in online entertainment.
Baidu issued Q2 financials on Aug. 12. Top line grew by 20% from a year ago and was 31.4 billion RMB ($4.86 billion).
Baidu’s business currently consists of two main parts, Baidu Core (which includes AI Cloud, autonomous driving, mobile usage, and more) and iQIYI.
Of the total revenue, 24 billion RMB ($3.72 billion) came from Baidu Core, up 27% from a year ago. Revenue from iQIYI was 7.6 billion RMB ($1.18 billion), up 3% from last year.
Total non-GAAP net income of 5.4 billion ($830 million) RMB translated into non-GAAP diluted earnings per of 15.41 RMB ($2.39).
For the third quarter, management expects revenues to be between 30.6 billion RMB ($4.7 billion) and 33.5 billion RMB ($5.2 billion), implying a potential growth rate of 8% to 19%.
So far in 2021, BIDU stock is down about 22%. The shares are trading at a forward price-earnings of 14.3 and price-sales ratio of 3.1.
Potential buy-and-hold investors should research the company further with a view to buy between $155 and $160.
Source: Investor Place