Baidu’s market value rises as robotaxi Apollo Go gains popularity – Baidu (NASDAQ:BIDU)
Baidu Inc BIDU The company’s shares posted their biggest rise in over a year, driven by growing interest in its Apollo Go robotaxi service in China.
Baidu shares rose as much as 13 percent in Hong Kong, after rising 8.5 percent in the U.S. on Tuesday. The stock traded higher on Wednesday.
Bloomberg reports that traders are optimistic that robotaxis will gain further traction following Beijing’s recent announcement that they will support ride-sharing and car rental services.
Also read: Report: Alibaba and Baidu lower AI prices amid fierce competition
Guotai Junan International analyst Li Muhua told Bloomberg: “Autonomous driving will become a key business in the next three months, supported by Tesla Inc. TSL launch of its robotaxis next month.”
Li expects Baidu’s Apollo Go in Wuhan to break even in 2024 and become profitable with a fleet expansion in 2025.
Phil S. Lee, head of Asia Pacific research at Mirae Asset Global Investments in Hong Kong, said: “Baidu is one of the leading providers of autonomous driving systems. Its main advantage is that it is open to many brands and can operate in China, where the government is promoting autonomous driving.”
BIDU Stock Forecast for 2024
Stock analysts on and off Wall Street typically use earnings growth and fundamental analysis as a means of valuation and forecasting. However, many in trading rely on technical analysis to create predictive models for stock price movements.
Some investors look to trends to predict where they think a stock might trade at a certain point in the future. Using Baidu as an example, an investor could assess a stock’s long-term prospects using a moving average and trendline. If they believe a stock will stay above the moving average, which many consider a bullish signal, they can extrapolate that trend into the future using a trendline. According to Benzinga Pro, the 200-day moving average for Baidu is $107.81, which is above the current price of $95.4. You can learn more about charts and trendlines here.
Traders believe that it is a generally positive signal when a stock is above its moving average, and a more negative signal when it falls below it. Investors can use trend lines to make an educated guess about how a stock might trade at a later date if conditions remain stable.
Price promotion: BIDU shares were trading 2.53% higher at $97.81 in pre-market trading at last check on Wednesday.
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Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
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