[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  PropulsionPoint Capital [@propulsionpoint](/creator/twitter/propulsionpoint) on x 1033 followers Created: 2025-07-13 14:42:41 UTC Idea alert $BIDU Grateful if I could get a follow, provided you find the work useful 🙏🙏🙏🙏🙏 This is the second name I would be adding to my China bets for H2 and beyond besides $BABA. Its a deep value play on China AI+ Robotaxi. RISK RETURN is squarely in our favor. They say cheap stays cheap - yes when the business model is broken. Not when you are innovating and leading in two powerful secular trends Robotaxi and AI. China names are frustrating I know - but ask yourself this question. Why are the capital market stocks in China breaking out? $FUTU and $TIGR have broken out to years high and $HKEX is at its XX week high. Global portfolio need reallocation , especially with $QQQ at such stretched valuations. How else will alpha get generated? $GOOG and $BIDU are very similar at this point when it comes to the investor: 🟩 Both have a search ads business that is "apparently" under pressure from AI 🟩 Both are making enhancements to their search functions with the help of AI 🟩 Both are leaders in autonomous driving ; google via Waymo and Baidu via Apollo Go 🟩 Both are trading at low P/E and EV/EBIT as street remains skeptical of their core business So why should one consider Baidu $BIDU? Let me highlight a few compelling reasons apart from the fact that China names are looking exciting for H2 and some of the China specific pointers that I listed for buying $BABA remains relevant for $BIDU as well. Here we go: 🫒 1) Cash is ~73% of its market cap. . Its market cap is ~30 Bn. Its cash position ~22 Bn end of Q1 2025. 🫒 2) Gross under-valuation: Essentially the core business is valued at $X Bn or ~23$ share price. BIDU's EPS in Q1 2025 which includes the AI investments impact was ~2.06$. If i simply annualize it its around ~8.24$. This implies a P/E (net of cash) of ~2.8X!!! Laughable? 🫒 3) Q1 2025 earnings- Its revenue growth was X% YoY and the results beat expectations. It has XXX Mn MAUs. Their AI cloud division surged XX% and is seeing accelerating momentum. I think one of the key reasons for that is due to a full stack solution with a highly competitive price-performance advantage 🫒 4) Autonomous Driving - $BIDU's Apollo Go is the market leader in China. it provided over XXX million rides in the first quarter of 2025, up XX% year over year. It expanded into UAE in March, 2025, its got permission to start in HK and is looking to enter SG and MY soon. Australia wont be too far either. Ernie XXX AI model is a key catalyst 🫒 5) Enhancement to Search- $BIDU has made some sweeping ramp ups to its search recently . Similar to google Baidu aims to provide direct answers, graphs, and analyses, moving beyond simple link lists. It also rolled out its first image-to-video model to compete with the likes of ByteDance and Kuaishou. Ernie X1 Is a key catalyst. 🫒 6) Share buybacks- Baidu has returned US$445 million to shareholders since the beginning of Q1 2025, bringing the cumulative repurchase to US$2.1 billion under the 2023 share repurchase program. There is still ~2.9$ Bn of share repurchase left. 🫒 7) Technical factors- $BIDUs 20/50/100 EMA have all converged at 87$. This type of "coiling" often leads to a sharp move in either direction. Besides its sitting at the top of a "descending triangle" pattern. To me it is at the cusp of a "bullish reversal" as it ends the downtrend. But lets wait for confirmation. Price is just below the 20/50/10 EMA. Please check attached graph. @Jake__Wujastyk had also posted a similar chart recently with the pattern. Its on point 🫒 8) Analyst coverage- X year price targets offered by XX analysts, the average target price for Baidu Inc is $XXXXXX with a high estimate of $XXXXXX and a low estimate of $XXXXX. The average target implies a upside of +26.97% from the current price of $XXXXX.  XXXXX engagements  **Related Topics** [baba](/topic/baba) [coins ai](/topic/coins-ai) [$baba](/topic/$baba) [china](/topic/china) [$bidu](/topic/$bidu) [alibaba group](/topic/alibaba-group) [stocks consumer cyclical](/topic/stocks-consumer-cyclical) [Post Link](https://x.com/propulsionpoint/status/1944407137863786783)
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PropulsionPoint Capital @propulsionpoint on x 1033 followers
Created: 2025-07-13 14:42:41 UTC
Idea alert $BIDU
Grateful if I could get a follow, provided you find the work useful 🙏🙏🙏🙏🙏
This is the second name I would be adding to my China bets for H2 and beyond besides $BABA. Its a deep value play on China AI+ Robotaxi. RISK RETURN is squarely in our favor.
They say cheap stays cheap - yes when the business model is broken. Not when you are innovating and leading in two powerful secular trends Robotaxi and AI.
China names are frustrating I know - but ask yourself this question. Why are the capital market stocks in China breaking out? $FUTU and $TIGR have broken out to years high and $HKEX is at its XX week high.
Global portfolio need reallocation , especially with $QQQ at such stretched valuations. How else will alpha get generated?
$GOOG and $BIDU are very similar at this point when it comes to the investor:
🟩 Both have a search ads business that is "apparently" under pressure from AI
🟩 Both are making enhancements to their search functions with the help of AI
🟩 Both are leaders in autonomous driving ; google via Waymo and Baidu via Apollo Go
🟩 Both are trading at low P/E and EV/EBIT as street remains skeptical of their core business
So why should one consider Baidu $BIDU?
Let me highlight a few compelling reasons apart from the fact that China names are looking exciting for H2 and some of the China specific pointers that I listed for buying $BABA remains relevant for $BIDU as well.
Here we go:
🫒 1) Cash is ~73% of its market cap. . Its market cap is ~30 Bn. Its cash position ~22 Bn end of Q1 2025.
🫒 2) Gross under-valuation: Essentially the core business is valued at $X Bn or ~23$ share price. BIDU's EPS in Q1 2025 which includes the AI investments impact was ~2.06$. If i simply annualize it its around ~8.24$. This implies a P/E (net of cash) of ~2.8X!!! Laughable?
🫒 3) Q1 2025 earnings- Its revenue growth was X% YoY and the results beat expectations. It has XXX Mn MAUs. Their AI cloud division surged XX% and is seeing accelerating momentum. I think one of the key reasons for that is due to a full stack solution with a highly competitive price-performance advantage
🫒 4) Autonomous Driving - $BIDU's Apollo Go is the market leader in China. it provided over XXX million rides in the first quarter of 2025, up XX% year over year. It expanded into UAE in March, 2025, its got permission to start in HK and is looking to enter SG and MY soon. Australia wont be too far either. Ernie XXX AI model is a key catalyst
🫒 5) Enhancement to Search- $BIDU has made some sweeping ramp ups to its search recently . Similar to google Baidu aims to provide direct answers, graphs, and analyses, moving beyond simple link lists. It also rolled out its first image-to-video model to compete with the likes of ByteDance and Kuaishou. Ernie X1 Is a key catalyst.
🫒 6) Share buybacks- Baidu has returned US$445 million to shareholders since the beginning of Q1 2025, bringing the cumulative repurchase to US$2.1 billion under the 2023 share repurchase program. There is still ~2.9$ Bn of share repurchase left.
🫒 7) Technical factors- $BIDUs 20/50/100 EMA have all converged at 87$. This type of "coiling" often leads to a sharp move in either direction. Besides its sitting at the top of a "descending triangle" pattern. To me it is at the cusp of a "bullish reversal" as it ends the downtrend. But lets wait for confirmation. Price is just below the 20/50/10 EMA.
Please check attached graph. @Jake__Wujastyk had also posted a similar chart recently with the pattern. Its on point
🫒 8) Analyst coverage- X year price targets offered by XX analysts, the average target price for Baidu Inc is $XXXXXX with a high estimate of $XXXXXX and a low estimate of $XXXXX. The average target implies a upside of +26.97% from the current price of $XXXXX.
XXXXX engagements
Related Topics baba coins ai $baba china $bidu alibaba group stocks consumer cyclical