What Investors Should Know About Baidu s AI Chip Spin-Off fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
Baidu (NASDAQ:BIDU), the Chinese tech giant that owns the country s top search engine, recently posted first-quarter numbers that topped analysts expectations. Its revenue rose 25% year over year to 28.1 billion yuan ($4.3 billion), beating estimates by 980 million yuan.
Its adjusted net income increased 39% to 4.3 billion yuan ($656 million), or 12.38 yuan per ADS which beat expectations by 1.63 yuan. Its adjusted EBITDA more than doubled to 5.9 billion yuan ($901 million).
Baidu expects its revenue to rise 14%-25% year over year in the second quarter. That forecast doesn t include any potential gains from its planned purchase of
JOYY s live streaming platform, YY Live.
Image source: Baidu.
Is Baidu Stock a Buy? | The Motley Fool fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
Alibaba (NYSE:BABA) was a better buy than
Baidu (NASDAQ:BIDU). I claimed that the strength of Alibaba s core commerce business, the narrowing losses at its cloud division, and the upcoming initial public offering (IPO) of its fintech affiliate Ant Group made it the stronger overall company.
Meanwhile, Baidu s ad revenue continued to decline, its streaming-video unit
iQiyi lost its momentum, and its expansion into next-gen markets like artificial intelligence (AI) and driverless cars wasn t generating much revenue yet.
But since I wrote that article, Alibaba s stock price has tumbled more than 10% as Baidu s stock price surged over 70%. Let s see why my call missed the mark and whether or not Baidu can maintain its recent momentum.