Considering the current macro environment, even as a super popular artificial intelligence (AIBaidu, a convincing company in the) field, will undoubtedly also cause controversy among investors. However, in my opinion, Baidu's attractive financial metrics actually brought benefits to Baidu. Therefore, I'm optimistic about Baidu's stock.
Baidu has taken the biggest leap forward - China
Baidu, which focuses on Internet-related services, is often called “China's Google,” and the market often uses Baidu andAlphabetMake a comparison. The Chinese tech giant has already made a big push into the field of artificial intelligence and has launched various services similar to Google, such as Baidu Maps. Furthermore, Baidu's stock will benefit from China's economic recovery and policy support.
Previously, Reuters this year5A report at the end of the month said Baidu might set up one10100 million yuan (approximately1.45A venture capital fund of (billion dollars). The fund aims to invest in startups that can promote the growth and development of artificial intelligence applications in various industries.
In addition, Baidu will also launch a contest for developers to use Baidu's artificial intelligence chatbot product to say a word of the word (ERNIE BOT) Build the app. The company has been around2019I've been developing Wenxin Words for years, and this year3Launched in January.
In the public domain, the Carnegie Endowment for International Peace (Carnegie Endowment for International Peace) Last year1Moon once pointed out, “China has introduced a series of policies to promote the development of artificial intelligence.” Furthermore, the foundation emphasized, “Anyone who wants to collaborate with China's artificial intelligence ecosystem needs to pay close attention to initiatives in this field.”
There is no doubt that China is vigorously promoting the development of artificial intelligence. In my opinion, this should be the catalyst for Baidu's stock price to continue rising.
Baidu progress
Although due toOpenAIand its chatbotchatGPTArtificial intelligence has become the focus of people's attention, but the current market reality is that only a few companies related to artificial intelligence have received a considerable premium. For example, the semiconductor company Nvidia (Nvidia) The current forward price-earnings ratio of the stock is close to56times. That's not to say Nvidia is a stock worth selling. Instead, I think the stock is just overpriced. However, under these circumstances, Baidu shares are not that bright.
Currently, the market expects the forward price-earnings ratio of Baidu shares to be15.08times. and software/Internet industry466.55Compared to double the average expected price-earnings ratio, Baidu's prices are unbelievably cheap. Even with the industry28.7Compared to double the historical price-earnings ratio, it's not hard to see that Baidu is still underestimated. The stock's historical price-earnings ratio is26.8double.
Furthermore, the net market ratio of Baidu shares is1.57times. In contrast, the sector's average net market ratio is5.21times. Compared to a range of other key financial indicators, Baidu shares offer discounts for investors.
Even from the stock price trend, Baidu's stock seems to be worth buying. For example, since1Since January, Baidu's stock price has only risen20.3%. In stark contrast to this, Nvidia recorded close records in the same period200%The increase.
Ongoing profitability
Another reason I've been following Baidu shares for a long time is its financial situation. Specifically, Baidu, a company, can benefit from continued profitability.
At the end of2019year12In January's fiscal year, Baidu's net profit was20.6100 million yuan. Despite being severely affected by the COVID-19 pandemic, the company's net profit for the second year reached224.7100 million yuan. in2021In fiscal year, Baidu's net profit was102.3100 million yuan, but at2022The year fell again to75.6100 million yuan.
However, my focus remains that Baidu has performed well despite external pressure, which gives people full confidence in Baidu's stock.
Analysts' Views
Let's take another look at Wall Street. Baidu shares received a consistent “strong buy” rating from analysts. This is based on13One buy,0One holding and0Based on a sales rating. What is the average target price obtained by Baidu190.58The dollar means that the stock is at a higher level than the current level33%The upward potential shows that the stock has strong potential to outperform the market.
conclusions
Artificial intelligence has had a huge impact among investors. In my opinion, Baidu is a convincing company. This is due to the company's correlation with artificial intelligence, policy support, and cheap stock prices. In other words, if investors want to bet on artificial intelligence, I recommend focusing on Baidu shares.