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Why BIDU Is Falling Today

Baidu (BIDU) is sinking 7% today after the China-based company reported that its online marketing revenue had fallen 7% last quarter versus the same period a year earlier. However, the company’s overall results did come in above analysts’ average estimates.

BIDU owns and operates an online search engine and has developed an AI chatbot.

A modern internet space with a person using Baidu services on a laptop.

A Look at BIDU’s Q4 Results

The firm’s online marketing revenue sank 7% year-over-year in Q4 to $2.46 billion, but its revenue from other sources jumped 18% YOY to $1.34 billion. The latter increase was caused primarily by the higher sales of the company’s AI cloud unit.

Baidu generated Q4 earnings per share, excluding certain items, of $2.63, well above analysts’ average estimate of $1.85. It reported Q4 revenue of $4.67 billion, compared with the mean outlook of $4.6 billion. Its sales fell 2% versus the same period a year earlier.

The monthly average user base of its Baidu App rose 2% YOY to 679 million.  However, the monthly average user base of the AI-enabled features of its content platform, Baidu Wenku, soared 216% YOY.

BIDU’s Comments and Another Possible Reason for BIDU’s Weakness

“2024 marked a pivotal year in our ongoing transformation from an internet-centric to an AI-first business. AI Cloud gained momentum, fueled by broad market recognition of our full stack AI capabilities,” said CEO Robin Li in a statement.

“Our AI Cloud business demonstrated robust momentum with fourth-quarter revenue growth accelerating to 26% year over year, offsetting the softness in online marketing business,” added Interim CFO Junjie He in a statement.

Li, BIDU’s CEO, reportedly did not attend a meeting of Chinese President Xi Jinping and the country’s top corporate leaders. The news may be contributing to today’s retreat of BIDU stock.

While we acknowledge the potential of BIDU, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BIDU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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