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Technology Stocks
Baidu (BIDU)
An SI Board Since July 2005
Posts SubjectMarks Bans Symbol
2008 89 0 BIDU
Emcee:  Frank Sully Type:  Moderated
Baidu was the most frequently used search engine in China in 2004, according to a survey by Shanghai iResearch Co., and was the second-largest Web site in China in terms of user traffic during the three months ended July 18, according to Net income for the three months that ended in March was $303,000, more than double compared with the same period a year ago.

There are likely more good times ahead, since China's Internet market is growing at a fast clip: according to iResearch, the number of Internet search users in China is projected to grow at a compound annual growth rate of 27.5% from 2005 to 2007.

"This company has a growth opportunity that's going to be seen by investors as enormous," says Paul Bard, an analyst with Renaissance Capital LLC in Greenwich, Conn. "And I'm sure what people are going to say is, wow, this could be what Google was three years ago."

Even Google appears to think the company is a good investment: The U.S. search engine owns 2.6% of Baidu, according to Securities and Exchange Commission filings, and isn't listed among the entities that plan to sell their stakes in the IPO.

The IPO is to be underwritten by Goldman Sachs Group Inc.'s Goldman Sachs (Asia) LLC, Credit Suisse Group's Credit Suisse First Boston and Piper Jaffray Cos., and will trade in the form of American depositary shares on the Nasdaq Stock Market under the symbol BIDU.

Baidu is selling 3.7 million shares to the public, a 12% sliver of the 31.7 million shares that will be outstanding after the offering. The company's executives, directors, and venture-capital firms will continue to own substantial stakes in Baidu after it goes public.

(from The Wall St Journal)

Goldman Sachs is lead underwriter and it is expected to begin trading at $19-$20. Here is their website.


Update: August 1, 2021

In recent years Baidu has invested heavily in artificial intelligence (AI) and has become China’s leading AI company. This is described in CEO’s excellent 2020 book, which I highly recommend. For the current state of affairs see the seven minute video below.

Book: “Artificial Intelligence Revolution: How AI Will Change Our Society, Economy, And Culture” by Baidu CEO Robin Li

Video: “Baidu: How China Became The World Champion In AI”

Baidu Is No Longer A Search Engine Play, But An AI Bet

Message 33435306

Baidu is invested heavily in AI search engines (obviously), autonomous vehicles, Baidu Brain and has a $2 billion AI chip subsidiary.

Self-driving vehicles: Message 33420466 Message 33420467
  • BAIDU: Apollo Robotaxi “Robocar” Autonomous Driving(Driverless) _ Baidu World 2021 _ CCTV (16 minute video)

Baidu Brain: Message 33420592
AI Chips: Message 33420330 Message 33420330
  • BAIDU: "Kunlun" Baidu's 2nd-generation AI Chip_Baidu World 2021_ CCTV p Message 33447433
Risks: The major risks of investing in Baidu have to do with it being a Chinese company listed on the NASDAQ.

Risk 1: China regulation: From tech to education

Risk 2: Chinese tech stocks slump as U.S. SEC begins rollout of law aimed at delisting

Risk 3: Invest in China, but Without Illusions

AI in general:

For a comprehensive discussion of AI and AI companies in general, see the Artificial Intelligence, Robotics and Automation board moderated by my friend Glenn Petersen. Subject 59856

Deep Learning:

Modern AI is based on Deep Learning algorithms. Deep learning is a subset of machine learning, which is essentially a neural network with three or more layers. These neural networks attempt to simulate the behavior of the human brain—albeit far from matching its ability—allowing it to “learn” from large amounts of data.

Deep Learning algorithms for AI. The first one-hour video explains how this works. Amazingly, it is just least squares minimization of the neural network loss function using multi-dimensional Newton Raphson (gradient descent). See second one half hour video. Who thought Calculus would come in handy?

1. MIT Introduction to Deep Learning

2. Gradient Descent, Step-by-Step

Math Issues: Optimizing With Multiple Peaks Or Valleys

A problem with gradient descent optimization is that it can find minima of functions as well as maxima of functions. Worse, there can be multiple peaks and valleys, so more properly gradient descent finds local extrema. One is interested in machine learning, e.g., in global minima. This makes the problem considerably more difficult. This is particularly true since loss functions for deep learning neural networks can have millions or even billions of parameters.

Another problem has to do with the size of the data sets used to train deep learning neural networks, which can be huge. Since gradient descent is an iterative process, it becomes prohibitively time-consuming to evaluate the loss function at each and every data point, even with high-performance AI chips. This leads to stochastic gradient descent: the loss function is evaluated at a relatively small random sample of the data at each iterative step.

Stochastic Gradient Descent:

Recent Earnings History:

Baidu EPS beats by RMB1.71, revenue in-line

Baidu EPS beats by $0.33, beats on revenue, guides Q3 revenue in line with consensus
Baidu climbs after Q1 beats driven by non-marketing sales gains
Baidu gains on strong Q4 profit, upside sales forecast
Baidu -1.6% after Q3 report shows positive revenue growth, deal for JOYY China streaming
Baidu -5.4% as revenues flag, SEC probes iQiyi
Baidu +9.7% as income jumps on milder revenue drop

Further updates will be provided as deemed necessary.
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ReplyMessage PreviewFromRecsPosted
2008Baidu rolls out driverless taxi service in two Chinese cities Chinese autonomouFrank Sully-54 minutes ago
2007Baidu's robotaxis don't need any human staff in these parts of China PuGlenn Petersen1Monday
2006China emerging as global AI pioneer By Ma Si | China Daily Updated: 2022-07-29Frank Sully1July 29
2005[graphic] and SANY to mass produce autonomous trucks JULY 28, 2022 BFrank Sully1July 28
2004Baidu: Beating Tesla In Potential $200 Billion Robotaxi Opportunity Jul. 26, 20Frank Sully-July 27
2003Real driverless cars are now legal in Shenzhen, China’s tech hub Rita Liao@ritaFrank Sully-July 26
2002Baidu Extends Metaverse Push With Virtual Hosts newslanes.comFrank Sully-July 21
2001Baidu World 2022 Sees Debut of World-leading AI Innovations to Transform AerospaFrank Sully1July 21
2000Check out Baidu’s Futuristic Robotaxi digitaltrends.comFrank Sully-July 21
1999Baidu Races Ahead of Tesla With Launch of Robotaxi With Detachable Steering WheeSr K1July 21
1998Chinese EV maker XPeng’s robotics arm raises $100 million to bring robots to houFrank Sully-July 20
1997Baidu: Eye on AI interview (35 minutes) [youtube video]Frank Sully-July 9
1996Baidu teases progress of its AI and self-driving tech Yusin Hu, DIGITIMES, TaipFrank Sully-July 8
1995China’s Jidu Robo-1 Looks Like It’s From the Future. Maybe It Is [graphic] [gJulius Wong-June 19
1994Key Takeaways From Baidu’s First EV Launch [graphic] Baidu, Inc (NASDAQ: BIDU)Frank Sully1June 15
1993A Breakthrough Preview: JIDU Auto Debuts Intelligent Robo-01 Concept Vehicle, PoFrank Sully-June 15
1992this article looks like its been written by a robot but thanks for keeping the tMadharry-June 7
1991Baidu Stock: Ride the Cloud to Profits [graphic] David Moadel May 31, 2022 SFrank Sully-May 31
1990The state of the autonomous vehicle industry in China and the U.S.: Drones, AutoGlenn Petersen1May 22
1989Baidu’s Autonomous Ride-hailing Service Platform Apollo Go Begins Operations in Frank Sully1May 11
1988Thanks for posting this, Glenn. This should definitely be good for Baidu’s stockFrank Sully-May 2
1987China Plans Reprieve for Tech Giants, Including Delaying New Rules, as Economy SGlenn Petersen2April 30
1986Happy St. Paddy’s Week! Cead Mile Failte! The Irish are on vacation until afterFrank Sully-March 14
1985China’s self-driving car development troubled TheBL Staff February 27, 2022 [Frank Sully-February 28
1984Baidu reportedly axes nearly 15% of staff After Didi Chuxing and ByteDance, BaiFrank Sully-February 25
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