BAIDU(#BAIDU) weekly special report based On 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE MARKET:
- AI MARKET SIZE IS LIKELY TO GROW AT 39% RATE DURING 2022-2028: According to Bloomberg Intelligence (AI) Market was valued approximately USD 59.67 Billion in 2021 and is projected to reach to roughly USD 422.37 Billion by 2028.
- MARKETS IN ASIA PACIFIC IS PROJECTED TO DEVELOP AT FASTER RATE. The use of AI services in major end-user sectors including healthcare, manufacturing, and automotive in nations like China, Japan, South Korea, and Australia has fueled this expansion. (Bloomberg)
ONLINE ADVERTISEMENT:
- MARKET SIZE: $465.5 BILLION IN 2021 AND EXPECTED TO GROW TO $1.089 TRILLION IN 2027 (22.3%). The global internet advertising market size was valued more than $465.5 billion in 2021, and is projected to reach $1.089 trillion by 2027, registering an average growth of 22.32% from 2021 to 2027.
- GLOBAL MARKETS: Google, Meta (formerly Facebook) and Amazon accounted for more than $7 in $10 (74%) of global digital ad spending in 2021, which is 47% of all money spent on advertising over that period.
BAIDU:
- THE COMPANY: BAIDU(#BAIDU) is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence. It is one of the largest AI and Internet companies in the world. Baidu is also the fourth largest cloud business player in China´s cloud industry after Alibaba, Huawei and Tencent. The company has been investing heavily in AI technology, including in cloud services, chips and autonomous driving, as it looks to diversify its revenue sources.
- ONLINE ADVERTISEMENT: Baidu owns the largest online search engine in China and it is often referred to as the “Chinese Google”. This core business generates most of its revenue from digital ads, and it initially grew extensively after Alphabet's Google shut down its search engine in mainland China in 2010. BIDU ad revenue amounts to approx. 77% of total revenues. In China, 84.3% of internet searches are done on Baidu.
- ARTIFICIAL INTELLIGENCE: Baidu Inc. has thrust itself into a global race to commercialize the next-generation of artificial-intelligence technologies like ChatGPT that could bring major transformations to the internet.
- STRONG POSITIVE REVENUE AND EARNINGS TREND: Q4 revenue rose 2% year over year to 32.54 billion yuan ($4.57 billion), beating analysts' estimates by $100 million. Its adjusted net income increased 16% year over year to $5.89 billion, or $2.37 per American depositary share, and cleared the consensus forecast by $0.17.
NEWS AND ANALYSIS:
- EVENT Q4 2022 EARNINGS March 7, 2023 (ESTIMATED): Baidu is expected to report a Q4 revenue of $32.828B and earnings per share of $14.376. Baidu has beaten both revenue and EPS estimations every single time during last 2 years’ expert for Q4 2021 and Q1 2022 when results were not published. (Source: Bloomberg)
- BAIDU TO LUNCH ChatGPT-Style Bot: The company proficient a model called ChatGPT which interacts in a conversational way. The dialogue format makes it possible for ChatGPT to answer follow-up questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests.
- PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 62% FROM IT'S ALL TIME HIGH OF $354.82 reached in February 2021. The stock has fallen to its lowest rate since 2010, trading in October last year around $71. Baidu was last trading around $153, and if full recovery follows recent all- time highs, the stock could see an upside of around ~132%. However, the stock may continue to decline.
- ANALYST OPINION: Morningstar is targeting $183, Mizuho forecasts $180, JPMorgan forecasts $170. Citigroup forecasts $168 and Bloomberg $169.43.
BAIDU (#BAIDU), February 02, 2023
Current Price:153.00
|
Baidu |
Weekly |
|
Trend direction |
|
|
215.00 |
|
|
198.00 |
|
|
180.00 |
|
|
126.00 |
|
|
109.00 |
|
|
98.00 |
Example of calculation based on weekly trend direction for 1 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
6,200.00 |
4,500.00 |
2,700.00 |
-2,700.00 |
-4,400.00 |
-5,500.00 |
|
Profit or loss in €² |
5,641.95 |
4,094.97 |
2,456.98 |
-2,456.98 |
-4,003.97 |
-5,004.96 |
|
Profit or loss in £² |
5,051.14 |
3,666.15 |
2,199.69 |
-2,199.69 |
-3,584.68 |
-4,480.85 |
|
Profit or loss in C$² |
8,247.02 |
5,985.74 |
3,591.45 |
-3,591.45 |
-5,852.73 |
-7,315.91 |
- 1.00 lot is equivalent of 100 units
- Calculations for exchange rate used as of 12:20(GMT) 02/02/2023
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