In October 2018, Baidu co-founder and chief executive officer Robin Li Yanhung in Beijing, China.
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GUANGZHOU, China – Shares of the company’s first-ranked Hong Kong-based Baidu jumped below 1% in the open on Tuesday.
Already the U.S. The Chinese technology giant listed in has raised 3. 1.31 billion in Hong Kong’s secondary list. Shares reduced that gain during morning trading.
Unlike the initial public offerings, the secondary listing cannot be greeted with massive rallies on the first day, as the company’s shares are already trading on other exchanges.
Hong Kong’s listing is a big moment for Baidu, China’s largest search engine. The company has spent a few years in mid-2018 and lags behind rivals such as Alibaba and Tencent. Baidu failed to move quickly as Chinese users went into mobile search and a tough ad market hurts businesses.
But the turn, led by CEO Robin Lee, is focused on reassuring investors that the technology giant is a leader in artificial intelligence and autonomous driving that diversifies its revenue streams other than advertising. And it seems to pay off.
In mid-May 2018, Baidu’s US-listed stock closed at 4 284.07, a record high at the time. But in March 2020, the stock fell 70% to ચા 83.62 amid a stock market crash. It was the lowest since April 2013.
But since the March 2020 low, the stock has risen more than 200%. Shares of Baidu hit an all-time high of 354.82 in February.
“I think EVs (electric vehicles) are part of the story. At the same time, cloud computing, integrating AI, these are all areas where Baidu has been investing really heavily since 2014 and we’re just starting to see that. That is the fruit of labor, “Brendan Asher, chief investment officer at CranShares, told Squawkx Asia on Tuesday.
Baidu has an autonomous driving system called Apollo that can be sold to auto tomakers. The company started a standalone electric vehicle company in partnership with Chinese carmaker Gili. Baidu is also testing robotaxis in cities, including Beijing. And last month, the pay firm launched a smart transportation project in the southern Chinese city of Guangzhou, the largest yet.
Mizuho Securities US and China Internet analyst James Lee has a કિંમત 350 price target on Baidu’s US-listed stock, up 31% from Monday’s closing price on Wall Street. He said the autonomous driving business could be worth $ 40 billion and the Chinese government would support the industry with favorable policies. Lee also said he expects Baidu’s advertising business to gain momentum in the first quarter of this year.
“We act like the company’s fundamentals and we expect Baidu’s shares to outperform the market,” Lee told Street Signus Asia on Tuesday.
Meanwhile, Baidu is trying to further diversify its revenue stream. The company has raised માટે 2 billion for its Cunlon Artificial Intelligence semiconductor unit.
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