Baidu (NASDAQ:BIDU) Stock, Quote.Headers.trade-ideas

Baidu

Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.

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BIDU

Shares of Chinese tech giant Baidu rose 3% Thursday afternoon. The stock is gaining after the Federal Reserve&#39;s unexpected decision to cut interest rates by 50 basis points.

Why Baidu (BIDU) Stock Is Trading Higher

Nvidia CEO Jensen Huang Identifies $1 Trillion Opportunity Amid Generative AI Shift: 'Data Centers Will Be All Accelerated Computing'

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General

BABA

NVDA

Since 2022, the U.S. government has curtailed the export of Nvidia&#39;s most advanced chips to China, tightening restrictions last year.

&#39;Matching Nvidia In Short-Term Is Unlikely,&#39; Analysts Predict As China Ramps Up Search For Rivalling Jensen Huang-Led Chip Giant Amid US Sanctions

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Citigourp Global Markets 2% Protected Notes Linked To The Djia

XPEV

Alibaba and other Chinese tech stocks are up as US Fed plans to cut interest rates, boosting demand and potential for AI growth.

What&#39;s Going On With Chinese Tech Stocks Like Alibaba, PDD On Thursday?

Baidu, Inc. - American Depositary Shares, each representing 8 ordinary share

Baidu Inc

Shares of Chinese tech giant Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) rose 3% to $87.24 Thursday afternoon after the Federal Reserve&#8217;s <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40944143/wall-street-breaks-records-chipmakers-rally-tesla-hits-2-month-high-as-fed-cut-drives-risk">unexpected decision</a> Wednesday to cut interest rates by 50 basis points. Shares of US-listed Chinese stocks are also possibly trading higher ahead of expectations that the People&#8217;s Bank of China will cut rates.
The Fed's move, which lowers the federal funds rate to a range of 4.75% to 5%, sparked renewed optimism for global tech stocks, particularly Baidu, which is heavily reliant on growth and innovation capital.
<h3 class="wp-block-heading">Global Liquidity Boost Favors Baidu's Innovation Initiatives</h3>
The rate cut is expected to increase global liquidity, making borrowing cheaper and more accessible. This benefits Baidu significantly, as the company has been aggressively investing in cutting-edge AI technologies, autonomous driving and cloud computing. 
Lower borrowing costs can ease financing for these capital-intensive projects, enabling Baidu to accelerate its innovation without excessive financial burden.
Analysts have long highlighted that Baidu's expansion into AI-driven businesses, such as its Apollo autonomous driving platform and Ernie AI model, requires substantial upfront investment. With the Fed's new rate trajectory suggesting more cuts ahead, the cost of capital will likely continue to fall, providing a favorable environment for Baidu to execute its strategic growth initiatives.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40938732/wall-street-ramps-up-interest-rate-cut-bets-after-fed-meeting-the-hard-landing-crow">Wall Street Ramps Up Interest Rate Cut Bets After Fed Meeting: &#8216;The Hard-Landing Crowd Should Disperse,&#8217; Economist Says</a>
<h3 class="wp-block-heading">Weaker U.S. Dollar Enhances Foreign Revenue</h3>
The Fed's decision has also led to a weakening U.S. dollar, which works to Baidu&#8217;s advantage. As a company with significant international exposure through its cloud services and AI products, Baidu stands to gain from a more favorable exchange rate. 
A weaker dollar boosts the purchasing power of foreign customers and increases the value of Baidu's overseas revenue when repatriated to China. This exchange-rate benefit could further improve Baidu&#8217;s earnings outlook, a key factor that investors are betting on.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40941053/s-p-500-dow-jones-hit-record-highs-magnificent-7-add-400-billion-after-feds-histori">S&amp;P 500, Dow Jones Hit Record Highs: Magnificent 7 Add $400 Billion After Fed&#8217;s Historic Interest Rate Cut</a>
<h2 class="wp-block-heading">How To Buy BIDU Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in Baidu&#8217;s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, BIDU has a 52-week high of $136.53 and a 52-week low of $79.69.

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Shares of US-listed Chinese stocks are possibly trading higher ahead of expectations that the People's Bank of China will cut rates. Also, the sector may be experiencing strength after the Fed cut rates by 50 basis points.

In its bid to create a domestic competitor to rival Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in the artificial intelligence (AI) chip market, China is reportedly facing significant challenges due to U.S. sanctions and technological gaps.
What Happened: Chinese firms are ramping up efforts to develop an alternative to Nvidia&#8217;s chips, crucial for AI operations. This initiative is part of Beijing&#8217;s wider strategy to lessen its reliance on American technology. However, U.S. sanctions on China and Nvidia&#8217;s market dominance pose significant hurdles, CNBC <a href="https://www.cnbc.com/2024/09/19/china-looks-for-domestic-nvidia-rival-but-thats-proving-challenging.html">reported</a> on Thursday. 
&#8220;Competing with Nvidia still presents substantial challenges in technological gaps, especially in general-purpose GPU. Matching Nvidia in the short-term is unlikely,&#8221; said Wei Sun, a senior analyst at Counterpoint Research.
Nvidia&#8217;s success is largely due to its server products, which contain graphics processing units (GPUs) that allow companies to train their AI models on extensive data. These AI models are vital for applications like chatbots and other emerging AI applications.
Since 2022, the U.S. government has curtailed the export of Nvidia&#8217;s most advanced chips to China, tightening restrictions last year. These semiconductors are crucial for China&#8217;s ambition to become a leading AI player.
Several Chinese contenders, including tech giants Huawei, Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and startups like Biren Technology and Enflame, are aiming to challenge Nvidia. However, these companies are currently trailing Nvidia.
See Also: <a href="https://www.benzinga.com/markets/asia/24/09/40886450/50-of-new-car-sales-in-china-are-electric-but-in-the-us-its-only-10-are-protectionist-policies-widen?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">50% Of New Car Sales In China Are Electric — But In The US, It&#8217;s Only 10%: Are Protectionist Policies Widening The Gap?</a>
U.S. sanctions and their subsequent impacts are the most significant hurdles to China&#8217;s ambitions. Some of China&#8217;s leading Nvidia challengers have been placed on the U.S. Entity List, restricting their access to American technology. Additionally, several U.S. restrictions have prevented key AI-related semiconductors and machinery from being exported to China.
Chinese GPU players design chips and rely on a manufacturing company for production. Previously, Taiwan Semiconductor Manufacturing Co. (TSMC) would have been the go-to, but U.S. restrictions mean many of these firms cannot access TSMC-made chips. As a result, they have to turn to SMIC, China&#8217;s largest chipmaker, whose technology is generations behind TSMC.
Despite these challenges, Chinese startups remain hopeful, seeking to raise funds to achieve their objectives. 
Why It Matters: Despite U.S. sanctions, Chinese tech giants have <a href="https://www.benzinga.com/markets/asia/24/08/40553145/despite-us-limits-on-chinas-access-to-nvidia-chips-tech-titans-like-alibaba-and-tencent-ramp-up-ai-i">increased their capital expenditure</a> in 2024, focusing on AI infrastructure. Furthermore, Nvidia&#8217;s AI chips are <a href="https://www.benzinga.com/government/24/09/40748185/chinas-markets-still-manage-to-get-nvidia-ai-chips-via-smuggling-report">still finding their way</a> into Chinese markets via smuggling, indicating the country&#8217;s continued investment in AI. 
Meanwhile, China&#8217;s Yangtze Memory Technologies Co has <a href="https://www.benzinga.com/government/24/09/40923879/chinas-ymtc-makes-strides-in-chip-production-substitutes-asml-lam-research-tech-as-us-sanctions-bite">made significant strides</a> in substituting foreign chipmaking technology with domestic alternatives. These developments highlight China&#8217;s persistent efforts to become a leading player in the global AI market, despite the challenges.
Read Next:
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<li><a href="https://www.benzinga.com/news/24/09/40915796/japan-expresses-serious-concerns-as-chinese-aircraft-carrier-enters-contiguous-waters-amid-rising-te?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Japan Expresses &#8216;Serious Concerns&#8217; As Chinese Aircraft Carrier Enters Contiguous Waters Amid Rising Tensions: &#8216;Utterly Unacceptable&#8217;</a></li>
</ul>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

'Matching Nvidia In Short-Term Is Unlikely,' Analysts Predict As China Ramps Up Search For Rivalling Jensen Huang-Led Chip Giant Amid US Sanctions

Chinese e-commerce juggernaut Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), also considered a barometer for the country's tech industry, is up in Thursday's premarket trading following the U.S. Federal Reserve lowering its benchmark interest rate to spur demand.
The U.S. Fed slashed the lending rate by 50 bps, lowering the central bank's benchmark rate to between 4.75% and 5%
Alibaba's domestic peers PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), JD.com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), and Baidu, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) stocks are also up.
<a target="_blank" href="https://in.benzinga.com/markets/equities/24/09/40932103/it-stocks-on-the-rise-after-u-s-fed-cuts-interest-rate" rel="noreferrer noopener">Analysts expect the interest</a> rate cut to drive growth in discretionary spending from U.S. companies. It could also boost Chinese companies that are invested in integrating capital-intensive artificial intelligence technology into their different businesses, including e-commerce, logistics, cloud, and more, to drive growth despite the U.S. sanctions on advanced technology.
Beaten-down Chinese electric vehicle stocks, including NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), and ZEEKR Intelligent Technology Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZK#NYSE">ZK</a>), are also up Thursday. AI technology is also an indispensable part of their progress.
Meanwhile, China <a target="_blank" href="https://www.benzinga.com/government/24/09/40923879/chinas-ymtc-makes-strides-in-chip-production-substitutes-asml-lam-research-tech-as-us-sanctions-bite" rel="noreferrer noopener">needs help finding</a> solutions to the U.S. technology embargo through domestic chipmakers like Yangtze Memory Technologies Co. However, Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) AI chips are still making their way into China via illegal routes and tweaking other countries' export rules.
Meanwhile, Alibaba's cloud unit will host its annual tech event, Aspara Conference 2024, to discuss the future of artificial general intelligence (AGI). Key speakers at the event include Alibaba and cloud unit chief Eddie Wu Yongming and XPeng founder He Xiaopeng, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3279005/alibaba-cloud-kick-annual-aspara-tech-event-focus-ai?module=perpetual_scroll_0&amp;pgtype=article" rel="noreferrer noopener">reports</a>. Autonomous driving and humanoid robots will be major topics at the Aspara main forum. Moonshot AI, StepFun, and Shengshu Technology AI start-ups will likely share their large language model (LLM) experiences.
Alibaba showcased 100 open-source artificial intelligence models catering to applications and sectors ranging from automobiles to gaming and science research, CNBC <a target="_blank" href="https://www.cnbc.com/2024/09/19/alibaba-launches-over-100-new-ai-models-releases-text-to-video-generation.html" rel="noreferrer noopener">cites</a> Alibaba from the event.
The <a target="_blank" href="https://www.benzinga.com/news/24/09/40901862/whats-going-on-with-chinese-ev-stocks-nio-xpeng-li-auto-zeekr-on-tuesday" rel="noreferrer noopener">Chinese stocks got</a> a boost earlier this week from reports indicating People's Bank of China's (PBOC) plans to cut the bank reserve requirement ratio (RRR) by 50 bps, followed by another half-point cut in the first half of 2025.
Price Actions: BABA stock is up 4.11% at $87.89 premarket at last check Thursday. PDD is up 3.27% at $101.44, JD is up 6.50% at $28.67, BIDU is up 3.40% at $87.55, NIO is up 4.78% at $5.25, XPEV is up 5.79% at $9.14, LI is up 2.75% at $21.33, ZK is up 3.63% at $15.71.
Photo via Shutterstock

What's Going On With Chinese Tech Stocks Like Alibaba, PDD On Thursday?

Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) stock was down Monday as China&#8217;s lackluster economic data led to a sell-off, SCMP <a target="_blank" href="https://www.scmp.com/business/markets/article/3278646/hong-kong-stocks-fall-weak-china-data-alibaba-and-tencent-lead-losses" rel="noreferrer noopener">reports</a>.
The economy also bears the brunt of the U.S. advanced semiconductor sanctions by restricting its access to sophisticated artificial intelligence chips from Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and peers.
Hyperscalers like Alibaba and Baidu, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) need the chips to accomplish their AI ambitions. AI can prove to be a crucial benefactor for its e-commerce, logistics and cloud businesses, something that Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) accomplished.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39982380/alibaba-and-tencent-lap-up-metas-ai-large-language-model" rel="noreferrer noopener">Alibaba And Tencent Lap Up Meta&#8217;s AI Large Language Model</a>
Last week, the <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40856820/biden-hikes-tariffs-on-chinese-goods-alibaba-jd-com-stocks-drop" rel="noreferrer noopener">Biden administration announced</a> tariff hikes&nbsp;on Chinese imports, including Chinese electric vehicles, solar cells, steel, aluminum, EV batteries, and critical minerals, effective September 27.
Economic data showed that Chinese industrial production, retail sales, and fixed-asset investment&nbsp;were disappointing in August. Home prices reported a record low in nine years.
Barclays flagged to SCMP the urgency of stepping up policy easing and boosting domestic demand.
The People&#8217;s Bank of China (PBOC) told SCMP it could slash banks&#8217; reserve requirement ratio (RRR) by 50 bps, followed by another half-point cut in the first half of next year.
Alibaba stock is down close to 3% in the last 12 months.
<h2 class="wp-block-heading">Alibaba Stock Forecast For 2030</h2>
Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.
If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.
 For Alibaba, over the past 5 years, it's annualized stock performance is -13.4%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $40.81.
Using a trend line (see how to <a href="https://www.benzinga.com/23/01/30335939/a-guide-on-how-to-identify-trend-reversals">perform this function here</a>), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price &#8211; be it an outside influence or managerial decision making.
Price Action: BABA stock is down 1.04% at $83.81 at the last check on Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/24/09/40748185/chinas-markets-still-manage-to-get-nvidia-ai-chips-via-smuggling-report" target="_blank" rel="noreferrer noopener">China&#8217;s Markets Still Manage To Get Nvidia AI Chips Via Smuggling: Report</a></li>
</ul>
Image via Shutterstock

AMZN

What's Going On With Alibaba Stock On Monday?

<a href="https://www.theinformation.com/articles/bytedance-steps-up-ai-chip-efforts" title="https://www.theinformation.com/articles/bytedance-steps-up-ai-chip-efforts">https://www.theinformation.com/articles/bytedance-steps-up-ai-chip-efforts</a>

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'TikTok's Parent Company, ByteDance, Is Accelerating Efforts To Make Its Own Artificial Intelligence Chips As It Looks For An Edge Over Its Rivals In China's AI Chatbot Market' - The Information

Investors with a lot of money to spend have taken a bearish stance on Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BIDU, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 10 uncommon options trades for Baidu.
This isn't normal.
The overall sentiment of these big-money traders is split between 20% bullish and 50%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $52,508, and 8 are calls, for a total amount of $345,687.
<h3>What's The Price Target?</h3>
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $75.0 to $135.0 for Baidu over the last 3 months. 
<h3>Volume &amp; Open Interest Development</h3>
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Baidu's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Baidu's significant trades, within a strike price range of $75.0 to $135.0, over the past month.
<h3>Baidu Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726071350_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$2.88</td>
<td>$2.84</td>
<td>$2.86</td>
<td>$100.00</td>
<td>$85.6K</td>
<td>3.2K</td>
<td style="text-align: right;">308</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/27/24</td>
<td>$4.65</td>
<td>$4.55</td>
<td>$4.65</td>
<td>$80.00</td>
<td>$51.1K</td>
<td>68</td>
<td style="text-align: right;">114</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$9.9</td>
<td>$9.75</td>
<td>$9.75</td>
<td>$75.00</td>
<td>$46.8K</td>
<td>1.5K</td>
<td style="text-align: right;">51</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$2.9</td>
<td>$2.85</td>
<td>$2.89</td>
<td>$100.00</td>
<td>$43.5K</td>
<td>3.2K</td>
<td style="text-align: right;">575</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$2.95</td>
<td>$2.89</td>
<td>$2.89</td>
<td>$100.00</td>
<td>$33.4K</td>
<td>3.2K</td>
<td style="text-align: right;">424</td>
</tr>
</tbody>
</table>

<h3>About Baidu</h3>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Having examined the options trading patterns of Baidu, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Current Position of Baidu</h3>
<ul>
<li>Trading volume stands at 909,901, with BIDU's price up by 2.13%, positioned at $83.8.</li>
<li>RSI indicators show the stock to be may be approaching overbought.</li>
<li>Earnings announcement expected in 69 days.</li>
</ul>
<h3>Expert Opinions on Baidu</h3>
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $116.4.
<ul>
<li>Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for Baidu, targeting a price of $105. </li>
<li>An analyst from Barclays persists with their Overweight rating on Baidu, maintaining a target price of $115. </li>
<li>Consistent in their evaluation, an analyst from Loop Capital keeps a Buy rating on Baidu with a target price of $115. </li>
<li>Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Baidu with a target price of $117. </li>
<li>Maintaining their stance, an analyst from Bernstein continues to hold a Outperform rating for Baidu, targeting a price of $130. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Baidu, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

Markets

This Is What Whales Are Betting On Baidu

Whales with a lot of money to spend have taken a noticeably bullish stance on Baidu.
Looking at options history for Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) we detected 16 trades.
If we consider the specifics of each trade, it is accurate to state that 43% of the investors opened trades with bullish expectations and 18% with bearish.
From the overall spotted trades, 9 are puts, for a total amount of $1,607,439 and 7, calls, for a total amount of $248,975.
<h3>Projected Price Targets</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $75.0 to $115.0 for Baidu over the recent three months. 
<h3>Volume &amp; Open Interest Trends</h3>
In terms of liquidity and interest, the mean open interest for Baidu options trades today is 874.9 with a total volume of 9,656.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Baidu's big money trades within a strike price range of $75.0 to $115.0 over the last 30 days.
<h3>Baidu Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725645715_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$11.05</td>
<td>$10.75</td>
<td>$10.85</td>
<td>$90.00</td>
<td>$434.0K</td>
<td>597</td>
<td>401</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>11/15/24</td>
<td>$11.2</td>
<td>$10.85</td>
<td>$10.89</td>
<td>$90.00</td>
<td>$320.1K</td>
<td>597</td>
<td>1.0K</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$34.8</td>
<td>$34.2</td>
<td>$34.2</td>
<td>$115.00</td>
<td>$266.7K</td>
<td>353</td>
<td>0</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$32.95</td>
<td>$32.45</td>
<td>$32.7</td>
<td>$115.00</td>
<td>$255.0K</td>
<td>2.1K</td>
<td>0</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>NEUTRAL</td>
<td>11/15/24</td>
<td>$10.9</td>
<td>$10.8</td>
<td>$10.84</td>
<td>$90.00</td>
<td>$135.5K</td>
<td>597</td>
<td>521</td>
</tr>
</tbody>
</table>

<h3>About Baidu</h3>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Having examined the options trading patterns of Baidu, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Current Position of Baidu</h3>
<ul>
<li>With a volume of 1,363,185, the price of BIDU is down -1.67% at $81.43. </li>
<li>RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.</li>
<li>Next earnings are expected to be released in 74 days.</li>
</ul>
<h3>What Analysts Are Saying About Baidu</h3>
In the last month, 5 experts released ratings on this stock with an average target price of $121.2.
<ul>
<li>Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Baidu with a target price of $117. </li>
<li>An analyst from Bernstein has decided to maintain their Outperform rating on Baidu, which currently sits at a price target of $130. </li>
<li>Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on Baidu with a target price of $105. </li>
<li>An analyst from Jefferies has decided to maintain their Buy rating on Baidu, which currently sits at a price target of $139. </li>
<li>An analyst from Barclays persists with their Overweight rating on Baidu, maintaining a target price of $115. </li>
</ul>
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Baidu with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Decoding Baidu's Options Activity: What's the Big Picture?

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) artificial intelligence chips are still selling in Chinese markets at discounted rates of up to 60% after entering the country via <a target="_blank" href="https://www.benzinga.com/government/24/07/39616102/despite-restrictions-nvidia-chips-are-still-reaching-china-wsj" rel="noreferrer noopener">smuggling and other channels</a>.
Smaller Chinese cloud providers are renting Nvidia AI servers at $6 an hour versus the $10 an hour charged by their U.S. counterparts despite the U.S. semiconductor sanctions, the Financial Times <a target="_blank" href="https://www.ft.com/content/10aacfa3-e966-4b50-bbee-66e13560deb4" rel="noreferrer noopener">reports</a>.
It signals that Chinese tech giants remain heavily invested in their AI ambitions despite the export controls.
The discounts reflect the vast availability of the banned A100 and H100 chips, advertised for sale on Chinese social media and e-commerce sites like Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Taobao and in electronics markets at a slight premium, as per FT.
The black market also highlights China&#8217;s cheaper labor and resources, allowing smaller vendors to remain competitive despite illegally sourcing components.
FT noted that Alibaba and ByteDance charge twice to fourfold the price of smaller local vendors due to stricter regulatory compliance.
<a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">Recent reports claimed</a> Alibaba, Tencent Holding (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) spent 50 billion Chinese Yuan ($7 billion) on capital expenditures in the first half of 2024, compared to 23 billion Chinese Yuan a year ago.
China earmarked 43.5 billion yuan ($6.12 billion) for computing data centers, according to the<a target="_blank" href="https://www.benzinga.com/government/24/08/40622630/us-embargo-fuels-chinas-6b-plus-data-center-investment-report" rel="noreferrer noopener"> National Data Bureau</a>.
Nvidia had maintained that the semiconductor sanctions had minimal to no impact on business, while companies like Alibaba acknowledged the downsides of the export controls.
Price Action: NVDA stock traded lower by 1.54% at $105.58 premarket at the last check Friday.
Photo via Shutterstock

TCEHY

China's Markets Still Manage To Get Nvidia AI Chips Via Smuggling: Report

10 analysts have expressed a variety of opinions on Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $123.9, along with a high estimate of $139.00 and a low estimate of $105.00. This current average has decreased by 13.05% from the previous average price target of $142.50. 
<img src="https://www.benzinga.com/files/images/story/2024/1725552020_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A clear picture of Baidu's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Shyam Patil</td>
<td>Susquehanna</td>
<td>Lowers</td>
<td>Positive</td>
<td>$105.00</td>
<td>$135.00</td>
</tr>
<tr>
<td>Rob Sanderson</td>
<td>Loop Capital</td>
<td>Lowers</td>
<td>Buy</td>
<td>$115.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>Jiong Shao</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$115.00</td>
<td>$125.00</td>
</tr>
<tr>
<td>Eddie Leung</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$117.00</td>
<td>$128.00</td>
</tr>
<tr>
<td>Thomas Chong</td>
<td>Jefferies</td>
<td>Lowers</td>
<td>Buy</td>
<td>$139.00</td>
<td>$174.00</td>
</tr>
<tr>
<td>Boris Van</td>
<td>Bernstein</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$130.00</td>
<td>$135.00</td>
</tr>
<tr>
<td>Fawne Jiang</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$135.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Jiong Shao</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$125.00</td>
<td>$133.00</td>
</tr>
<tr>
<td>Eddie Leung</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$128.00</td>
<td>$140.00</td>
</tr>
<tr>
<td>Rob Sanderson</td>
<td>Loop Capital</td>
<td>Lowers</td>
<td>Buy</td>
<td>$130.00</td>
<td>$155.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Baidu. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Baidu compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Capture valuable insights into Baidu's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/BIDU/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Baidu analyst ratings.</a>
<h2>All You Need to Know About Baidu</h2>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
<h3>Financial Insights: Baidu</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, Baidu faced challenges, resulting in a decline of approximately -0.37% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: Baidu's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.17%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Baidu's ROE stands out, surpassing industry averages. With an impressive ROE of 2.19%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Baidu's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.32% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Baidu's debt-to-equity ratio is below the industry average at 0.33, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Peeling Back The Layers: Exploring Baidu Through Analyst Insights

Financial giants have made a conspicuous bullish move on Baidu. Our analysis of options history for Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) revealed 10 unusual trades.
Delving into the details, we found 80% of traders were bullish, while 10% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $394,496, and 7 were calls, valued at $224,664.
<h3>Projected Price Targets</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $70.0 and $115.0 for Baidu, spanning the last three months.
<h3>Insights into Volume &amp; Open Interest</h3>
In today's trading context, the average open interest for options of Baidu stands at 2300.33, with a total volume reaching 1,292.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Baidu, situated within the strike price corridor from $70.0 to $115.0, throughout the last 30 days.
<h3>Baidu Option Volume And Open Interest Over Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725549402_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$31.9</td>
<td>$29.85</td>
<td>$31.9</td>
<td>$115.00</td>
<td>$248.7K</td>
<td>430</td>
<td style="text-align: right;">78</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$2.44</td>
<td>$2.31</td>
<td>$2.44</td>
<td>$80.00</td>
<td>$73.2K</td>
<td>1.6K</td>
<td style="text-align: right;">7</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>09/20/24</td>
<td>$7.3</td>
<td>$7.25</td>
<td>$7.25</td>
<td>$90.00</td>
<td>$72.5K</td>
<td>7.9K</td>
<td style="text-align: right;">100</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$3.15</td>
<td>$3.05</td>
<td>$3.15</td>
<td>$100.00</td>
<td>$42.1K</td>
<td>3.1K</td>
<td style="text-align: right;">146</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$1.91</td>
<td>$1.91</td>
<td>$1.91</td>
<td>$90.00</td>
<td>$34.9K</td>
<td>3.9K</td>
<td style="text-align: right;">335</td>
</tr>
</tbody>
</table>

<h3>About Baidu</h3>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
In light of the recent options history for Baidu, it's now appropriate to focus on the company itself. We aim to explore its current performance.
<h3>Present Market Standing of Baidu</h3>
<ul>
<li>Trading volume stands at 537,639, with BIDU's price up by 0.75%, positioned at $83.0.</li>
<li>RSI indicators show the stock to be is currently neutral between overbought and oversold.</li>
<li>Earnings announcement expected in 75 days.</li>
</ul>
<h3>What The Experts Say On Baidu</h3>
5 market experts have recently issued ratings for this stock, with a consensus target price of $120.8.
<ul>
<li>An analyst from Bernstein has decided to maintain their Outperform rating on Baidu, which currently sits at a price target of $130. </li>
<li>Maintaining their stance, an analyst from Loop Capital continues to hold a Buy rating for Baidu, targeting a price of $115. </li>
<li>Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Baidu, targeting a price of $139. </li>
<li>Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on Baidu with a target price of $105. </li>
<li>An analyst from Barclays persists with their Overweight rating on Baidu, maintaining a target price of $115. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Baidu, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Behind the Scenes of Baidu's Latest Options Trends

Susquehanna analyst Shyam Patil maintains Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) with a Positive and lowers the price target from $135 to $105.

Price Target

Susquehanna Maintains Positive on Baidu, Lowers Price Target to $105

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) continues to make waves in the artificial intelligence (AI) chip market, even as Chinese tech giant Huawei Technologies Co faces significant challenges in its bid to compete.
Despite Huawei&#8217;s efforts to create a domestic alternative with its Ascend series, the company&#8217;s software, particularly the Cann platform, reportedly struggles to match the ease of use and efficiency offered by Nvidia&#8217;s CUDA platform, industry insiders reveal, the Financial Times <a target="_blank" href="https://www.ft.com/content/3dab07d3-3d97-4f3b-941b-cc8a21a901d6" rel="noreferrer noopener">reports</a>.
Huawei, striving to compete against Nvidia&#8217;s well-established position, has taken proactive steps by dispatching engineers to assist clients like Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), iFlytek, and Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) in transitioning their systems from Nvidia&#8217;s CUDA to Huawei&#8217;s Cann.
Despite these challenges, Huawei has seen growing demand for AI chips, driven partly by supply constraints and the U.S. government&#8217;s tightened export controls on high-performance silicon.
<a target="_blank" href="https://www.benzinga.com/news/24/08/40659587/nvidias-blackwell-chip-potential-signals-strong-future-growth-analysts" rel="noreferrer noopener">Analysts remain optimistic</a> about Nvidia&#8217;s future despite challenges with its new Blackwell chips, which are nearly double the size of their predecessors and face manufacturing issues impacting yields and margins. Wall Street projects third-quarter revenue and EPS of $32.50 billion and $0.73.
Nvidia stock gained 146% in the last 12 months, buoyed by the AI frenzy. Investors can gain exposure to the stock through Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and iShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>).
Price Action:&nbsp;NVDA stock traded down 7.65% at $110.24 at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

Nvidia Maintains AI Chip Dominance as Huawei Struggles to Compete: Report

The Shanghai Composite Index plunged by up to 0.6%, slipping below the crucial support level of 2,800., leading to the drop in the US listed stocks of certain Chinese companies.
Chinese stocks such as Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) witnessed a pre-market slump, a reaction to a notable fall in the Shanghai Composite Index.
What Happened: The Shanghai Composite Index plunged by up to 0.6%, slipping below the crucial support level of 2,800. As per Bloomberg, this downturn was spearheaded by banks, including the Agricultural Bank of China Ltd. and Industrial &amp; Commercial Bank of China Ltd., which each retreated by at least 4%.
Subsequently, Chinese firms listed in the U.S. experienced a pre-market dip on Tuesday, as per <a href="https://pro.benzinga.com">Benzinga Pro </a>data. Alibaba saw a 1.75% dip, while its rivals JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) registered a 1.37% decline and Temu-parent PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) dropped by 1.60%.
Chinese internet giant Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) was also down by 1.44%. Chinese EV maker Li Auto Inc.(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) showed one of the highest declines at 3.44% while other EV makers like XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) and NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) remained largely unaffected.
See Also: <a href="https://www.benzinga.com/news/24/08/40647203/teslas-chinese-rival-zeekr-takes-on-elon-musks-ev-giant-with-a-more-affordable-electric-suv-in-china?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Chinese Rival Zeekr Takes On Elon Musk&#8217;s EV Giant With A More Affordable Electric SUV In China Than Model Y</a>
Francis Chan, an analyst at Bloomberg Intelligence, suggested that the selloff could be a result of disappointment over first-half results, with five out of six state banks reporting profit declines. He also noted that some investors might be cashing in after the sector outperformed the broad market this year.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40646699/teslas-china-woes-just-got-worse-xpengs-model-3-killer-receives-over-30k-orders-in-48-hours-of-l?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s China Woes Just Got Worse: XPeng&#8217;s Model 3 Killer Receives Over 30K Orders In 48 Hours Of Launch</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Asia

Pre-Market Outlook

Why Alibaba, Li Auto, Baidu And Other Chinese Stocks Are Falling In Pre-Market

Deep-pocketed investors have adopted a bearish approach towards Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in BIDU usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Baidu. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 25% leaning bullish and 62% bearish. Among these notable options, 6 are puts, totaling $375,169, and 2 are calls, amounting to $283,355.
<h3>Projected Price Targets</h3>
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $80.0 to $135.0 for Baidu during the past quarter. 
<h3>Volume &amp; Open Interest Trends</h3>
In today's trading context, the average open interest for options of Baidu stands at 997.12, with a total volume reaching 1,445.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Baidu, situated within the strike price corridor from $80.0 to $135.0, throughout the last 30 days.
<h3>Baidu Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725040138_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$2.44</td>
<td>$2.37</td>
<td>$2.43</td>
<td>$90.00</td>
<td>$243.0K</td>
<td>3.5K</td>
<td>1.0K</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>06/20/25</td>
<td>$10.4</td>
<td>$10.25</td>
<td>$10.3</td>
<td>$85.00</td>
<td>$154.5K</td>
<td>2.3K</td>
<td>150</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$3.55</td>
<td>$3.4</td>
<td>$3.5</td>
<td>$80.00</td>
<td>$52.5K</td>
<td>515</td>
<td>159</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$18.5</td>
<td>$18.0</td>
<td>$18.0</td>
<td>$100.00</td>
<td>$52.2K</td>
<td>913</td>
<td>40</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$35.9</td>
<td>$35.65</td>
<td>$35.65</td>
<td>$120.00</td>
<td>$49.9K</td>
<td>391</td>
<td>0</td>
</tr>
</tbody>
</table>

<h3>About Baidu</h3>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Having examined the options trading patterns of Baidu, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
<h3>Present Market Standing of Baidu</h3>
<ul>
<li>Currently trading with a volume of 1,235,989, the BIDU's price is up by 0.79%, now at $84.48. </li>
<li>RSI readings suggest the stock is currently is currently neutral between overbought and oversold.</li>
<li>Anticipated earnings release is in 81 days.</li>
</ul>
<h3>What Analysts Are Saying About Baidu</h3>
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $123.2.
<ul>
<li>Consistent in their evaluation, an analyst from Jefferies keeps a Buy rating on Baidu with a target price of $139. </li>
<li>An analyst from Loop Capital has decided to maintain their Buy rating on Baidu, which currently sits at a price target of $115. </li>
<li>Consistent in their evaluation, an analyst from Bernstein keeps a Outperform rating on Baidu with a target price of $130. </li>
<li>An analyst from Barclays has decided to maintain their Overweight rating on Baidu, which currently sits at a price target of $115. </li>
<li>Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Baidu, targeting a price of $117. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Baidu, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

What the Options Market Tells Us About Baidu

China&#8217;s push for autonomous vehicles is causing <a href="https://www.benzinga.com/news/24/08/40479370/tesla-robotaxi-rival-waymo-witnesses-rapid-expansion-in-its-weekly-paid-rides-doubling-to-100k-in-3">job security fears among drivers</a>, but experts argue that new job opportunities are emerging.
What Happened: China issued 16,000 test licenses for autonomous vehicles and opened 32,000 kilometers of public test roads on Tuesday. In June, the government approved nine domestic automakers, including BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDF#OTC">BYDDF</a>)&nbsp;and Nio (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), to test automated driving technologies on public roads, <a href="https://www.cnbc.com/2024/08/30/chinas-drivers-fret-about-robotaxi-push-experts-say-there-will-be-new-jobs.html">reported</a> CNBC. 
Elon Musk aims to get regulatory approval for Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) Full-Self Driving technology by year-end. The electric vehicle maker recently <a href="https://www.benzinga.com/markets/equities/24/07/39735115/tesla-to-delay-robotaxi-plans-by-2-months-stock-slides">delayed its robotaxi unveiling</a> from August to October, allowing more time for prototype development.
Many Chinese social media users express concerns that autonomous driving is &#8220;snatching rice bowls&#8221; of drivers. Baidu Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) self-driving platform Apollo Go operates around 400 robotaxis in Wuhan, aiming to increase to 1,000 by year-end. CEO Robin Li mentioned that scaling will be gradual and could take years.
Taxi drivers in Wuhan petitioned to limit Apollo Go&#8217;s service. A 16-minute robotaxi ride in Beijing costs 10.36 yuan ($1.46), about half the fare of traditional ride-hailing apps.
Experts believe autonomous mobility will mature gradually. Mohit Sharma, a research analyst at Counterpoint Research, noted that job losses will be gradual and governments could help transition drivers to new roles. 
"You will not lose all the jobs in one go. It will be a slow transition phase area by area, region by region,"&nbsp;Sharma said, according to the report. 
An Apollo Go spokesperson stated the firm is committed to creating new job opportunities in monitoring, testing, and data annotation.
See Also: <a href="https://www.benzinga.com/news/24/08/40550115/horror-show-for-teslas-q3-margins-says-analyst-as-elon-musk-led-company-extends-zero-percent-financi?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Horror Show&#8217; For Tesla&#8217;s Q3 Margins, Says Analyst, As Elon Musk-Led Company Extends Zero-Percent Financing To End Of Q3</a>
Why It Matters: The rapid expansion of autonomous vehicles in China is part of a global trend, with significant implications for the job market and industry competition.
Despite the delay, Tesla is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40573531/why-tesla-is-likely-to-dominate-robotaxi-market-despite-googles-waymo-and-baidu-hol">expected to dominate the robotaxi market</a>. According to Ark Invest analyst Tasha Kenney, Tesla&#8217;s core competencies will help it compete against frontrunners like&nbsp;Alphabet Inc.‘s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) Google-owned Waymo and Baidu. Kenney noted that Waymo&#8217;s new vehicle, developed with Geely Automobile Holdings Limited, aims to reduce costs significantly.
Meanwhile, Chinese firm WeRide has received <a href="https://www.benzinga.com/news/24/08/40360740/teslas-robotaxi-plans-face-fresh-competition-as-chinese-firm-weride-receives-approval-to-test-driver">approval to test driverless vehicles</a> with passengers in California, adding to the competitive landscape. This approval marks a significant step in the global race for autonomous vehicle technology.
Baidu is also making strides, with its robotaxi operations <a href="https://www.benzinga.com/news/24/08/40556758/baidus-robotaxi-has-been-getting-closer-to-scalable-adoption-with-unit-economics-breakeven-in-sight">nearing scalable adoption</a>. Goldman Sachs analyst Lincoln Kong recently highlighted Baidu&#8217;s progress, noting that the company is close to achieving unit economics breakeven.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/08/40574576/rivian-or-lucid-which-of-the-two-loss-making-ev-startups-is-solving-cash-burn?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Rivian Or Lucid: Which Of The Two Loss-Making EV Startups Is Solving Cash Burn?</a></li>
</ul>
Image Via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Equities

BYDDF

BYDDY

GOOG

GOOGL

TSLA

Amid Tesla, Waymo And BYD Battle For Robotaxi Supermacy, Employment Worries Rise In China — Experts Say Jobs Won't Vanish In 'One Go'

Jiyue, the electric vehicle manufacturer established by Baidu, Inc.&nbsp;&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) in collaboration with Geely Holding Group, has reportedly commenced pre-sales for its second model, the Jiyue 07 electric sedan, with the <a target="_blank" href="https://www.benzinga.com/electric-vehicles" rel="noreferrer noopener">official launch scheduled for next month.</a>
Jiyue initiated pre-sales for the Jiyue 07 yesterday, with a starting price of RMB215,900 ($30,300), and announced that the model will officially launch on September 10, <a target="_blank" href="https://cnevpost.com/2024/08/29/jiyue-begins-pre-sales-of-jiyue-07-sedan/" rel="noreferrer noopener">reported </a>CnEV Post.
In China, the typical process for launching a new EV model involves unveiling, pre-sales, and a formal launch, allowing for an extended marketing period.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/24/08/40627649/lucid-golden-cross-sparks-investor-interest-as-air-sapphire-challenges-tesla" rel="noreferrer noopener">Lucid Golden Cross Sparks Investor Interest As Air Sapphire Challenges Tesla</a>
The Jiyue 07 is a C-class all-electric sedan and represents the brand&#8217;s second model, following the Jiyue 01 SUV.
The Jiyue 07 measures 4,953 mm in length, 1,989 mm in width, and 1,475 mm in height, with a wheelbase of 3,013 mm, CnEV Post added.
In comparison, the latest Tesla Model 3 is smaller, with dimensions of 4,720 mm in length, 1,848 mm in width, 1,442 mm in height, and a wheelbase of 2,875 mm.
The Jiyue 07 will feature the official Apollo 2.0 smart driving system, which normally costs RMB29,900. Currently, customers can purchase the system at a discounted price of RMB4,999, CnEV Post added.
Price Action: BIDU shares are trading higher by 2.11% to $84.10 at last check Thursday.
Image via Shutterstock
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<li><a href="https://www.benzinga.com/news/earnings/24/08/40621553/wall-street-on-track-for-relief-rally-with-nvidia-earnings-in-rearview-mirror-strategist-says-near-" target="_blank" rel="noreferrer noopener">Wall Street On Track For Relief Rally With Nvidia Earnings In Rearview Mirror: Strategist Says Near-Term Market Trajectory May Not Hinge On Presidential Election But This</a></li>
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Baidu-Backed Jiyue Launches Pre-Sales For New Jiyue 07 Sedan: Report

BILI

Shares of US-listed Chinese stocks are trading lower. Chinese stocks may be under pressure in sympathy with Temu parent PDD, which continues to fall after its recent Q2 earnings report.

International Data Corporation (IDC) rekindled optimism in smartphone makers like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with its latest market update. It expects global smartphone shipments to climb by 5.8% to 1.23 billion units in 2024, recuperating from two challenging <a target="_blank" href="https://www.idc.com/getdoc.jsp?containerId=prUS52550324" rel="noreferrer noopener">years</a>.
The research firm flagged the popularity of budget Android smartphones in China and emerging markets and the luxury markets&#8217; acceptance of generative artificial intelligence smartphones as potential catalysts.
IDC expects Android to grow nine times faster at 7.1% than Apple iOS due to higher competition in China.
However, IDC highlighted GenAI&#8217;s success with the upcoming iPhone 16 and Apple&#8217;s capability to forge <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39434301/apples-ai-strategy-faces-hurdles-in-china-talks-with-local-firms-are-ongoing" rel="noreferrer noopener">local AI partnerships</a> in China as potential growth drivers for Apple.
IDC expects the iOS trajectory to improve in 2025 with 4% year-over-year growth courtesy of Apple Intelligence.
IDC expects GenAI smartphones to win an 18% market share by 2024, driven by the premiumization trend.
In&nbsp;2023,&nbsp;Apple&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/06/39164337/apples-streaming-ambitions-in-china-continue-despite-geopolitical-tensions" rel="noreferrer noopener">ramped up its</a> China-based suppliers and manufacturing sites&nbsp;and launched a new&nbsp;Apple store in Shanghai, reflecting its keenness in the market.
CEO Tim Cook attended the China Development Forum in Beijing. Apple&nbsp;also discussed integrating&nbsp;Baidu Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) advanced generative AI technology into&nbsp;its devices within China.
Apple stock gained 27% in the last 12 months. Investors can gain exposure to Apple through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and iShares Core S&amp;P Total U.S. Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITOT#NYSE">ITOT</a>).
<h2 class="wp-block-heading">Will Apple Stock Go Up?</h2>
When trying to assess whether or not Apple will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $240.54 on Apple. The Street high target is currently at $300.0 and the Street low target is $164.0. Of all the analysts covering Apple, 38 have positive ratings, 7 have neutral ratings and 3 have negative ratings.
In the last month, 16 analysts have adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/AAPL/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Apple have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Apple is 22.83% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Apple, visit <a href="https://www.benzinga.com/quote/AAPL">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action: AAPL shares traded higher by 0.13% at $228.32 premarket at the last check on Wednesday.
Image via Shutterstock

Trading Ideas

AAPL

ITOT

Apple's Market Share Poised To Gain, GenAI And iPhone 16 Lead the Way: IDC

<h4>Key Takeaways:</h4>
<ul>
<li>iMotion generated 640 million yuan in revenue in the first half of the year, up 17.1%, as its loss narrowed slightly to 98.6 million yuan</li>
<li>The autonomous driving technology company&rsquo;s gross margin dropped from an already-low 7.55% in the first half of 2023 to 7.05% in the same period this year</li>
</ul>
By Li Shih Ta&nbsp;
Autonomous driving is taking to China&rsquo;s roads, with self-driving taxis now conducting road tests in many cities and at least 10 vehicle brands licensed for Level 3 semi-autonomous driving. While government support is helping to fuel the sector&rsquo;s development, few are finding any profits just yet. To the contrary, many continue to struggle with low margins in an increasingly crowded and overheating field that includes&nbsp;iMotion Automotive Technology (Suzhou) Co. Ltd.&nbsp;(1274.HK).&nbsp;
The autonomous driving technology company&rsquo;s&nbsp;recently announced results&nbsp;for the first half of this year showed its revenue rose 17.1% year-on-year to 640 million yuan ($89.7million), while its gross profit also rose 9.3% to 44.9 million yuan. The company continued to lose money, though the loss narrowed slightly to 98.6 million yuan from 99.8 million yuan a year earlier.
During the six-month period, iMotion delivered 96,000 sets of its self-driving solutions and products, nearly double the figure from a year earlier.
Despite its solid progress in many metrics, iMotion&rsquo;s gross margin is veering in the wrong direction, coming in at the lower end among publicly listed companies seeking to commercialize Level 2 self-driving solutions. Level 2 is the third level on a six-tier autonomous driving scale where Level 0 represents traditional driving with no automated assistance and Level 5 is fully autonomous.&nbsp;
iMotion&rsquo;s gross profit margin in the first half of this year clocked in at a meager 7.05%, down from 9.9% for all last year and 7.55% in the year-ago period. By comparison, industry peer&nbsp;Horizon Robotics, which focuses on chip design for autonomous driving systems, logged a far higher gross margin of 70.5% last year.
<h4>Vulnerabilities and struggles&nbsp;</h4>
iMotion&rsquo;s margin problems are rooted in its lack of its own hardcore technological capabilities. Compared with peers like&nbsp;Baidu(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>),&nbsp;Pony.ai&nbsp;and&nbsp;WeRide, all known for developing their own self-driving technologies, iMotion is known in the industry more as a type of subcontracting intermediary.
The company owes its rapid growth to two key partnerships, one with leading Chinese carmaker&nbsp;Geely&nbsp;and the other with Israeli self-driving technology company&nbsp;Mobileye&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mbly#NASDAQ">MBLY</a>).
In 2020, iMotion reached a strategic cooperation agreement to purchase advanced driver assistance systems (ADAS) software and computing chips from Mobileye, and the pair worked together to develop an assisted driving navigation solution called Supervision. Subsequently it clinched a special development partnership agreement with Zeekr, the EV brand of Geely.
In October 2021, Zeekr launched its inaugural Zeekr 001 model, giving iMotion&rsquo;s revenue a major boost as it shot up more than six times from just 180 million yuan in 2021 to 1.33 billion yuan in 2022. Not surprisingly, 96% of its revenue came from Geely.
According to its latest annual report, iMotion&rsquo;s purchases from Mobileye totaled about 1 billion yuan last year, accounting for 88.7% of its total procurement expenses. Its sales of Supervision systems to Geely brought in 1.08 billion yuan in revenue, and its revenue from the carmaker totaled 1.13 billion yuan, accounting for 93.3% of its total.
Geely and Mobileye have worked together since 2018, meaning iMotion&rsquo;s key supplier and customer are already close partners. Accordingly, iMotion acknowledges in its latest annual report that there is no guarantee that Mobileye will not collaborate more directly with Geely in the future, nor that Geely won&rsquo;t work with other top-tier suppliers for similar products.
The company&rsquo;s dual reliance on Mobileye for autonomous-driving chips and Geely for most of its revenue limits iMotion&rsquo;s bargaining power both upstream and downstream, making it hard to boost its gross margin.&nbsp;
At its most recent product launch, Zeekr announced that its 2025 Zeekr 001 would use the Haohan smart driving 2.0 system and be equipped with two Nvidia smart driving chips and LiDAR systems. It will retain the Mobileye solution only for its entry-level models, meaning iMotion is likely to lose some business from the relationship.
At the same time, Zeekr appears to be working more directly with Mobileye to localize its self-driving technologies. Mobileye announced earlier this month that it would launch a new generation of ADAS and Level 2+ through Level 4 autonomous driving products based on the Eye Q6H chip for Zeekr. But the announcement made no mention of iMotion.
<h3>Stock Roller-Coaster Ride&nbsp;</h3>
The lack of its own proprietary technology has made iMotion&rsquo;s stock vulnerable to big fluctuations, with the shares going through several rounds of ups and downs since their IPO late last year.
At the end of April, the shares rose to an all-time high of HK$115.60, nearly three times the offering price. But the price plummeted by 12% and 39.2% over two days at the start of May, coming down to around HK$60. After a slow recovery, the stock tanked again by 26.5% on June 3, then 18.2% on June 20, and by another 12.4% on July 2.
But that was nothing compared to July 17, when the stock suddenly plunged 68.3% at the opening, falling from HK$84.05 to HK$26.40. That prompted the company to issue an emergency statement, stressing that everything was in order with its operations. But those words failed to placate investors, and by mid-August the stock was down 80% from its peak.
The company is aware of its lack of proprietary technology, and has been actively developing its own systems to fill that gap. Its self-developed iDC autonomous driving domain controller has reached the mass production stage. In the first half of this year, the company had letters of intent to try out the product over the next two years from 18 customers, including Chery, Geely, Dongfeng Auto and Leapmotor, showing iMotion may be on the cusp of a new era for its self-developed products.
After nearly half a year of turmoil, the stock also got some good news on the technical front, as it was selected for inclusion as a constituent of the Hang Seng family of indexes, effective Sept. 9. The news sent the stock up 29.3%, as investors and managers who follow those indexes began buying iMotion shares in anticipation of the adjustment.
iMotion shares now trade at a price-to-sales (P/S) ratio of 3.2 times, higher than the 2.1 times of&nbsp;Huizhou Desay SV Automotive(002920.SZ), but still not extremely high for a high-growth tech company. To attain loftier multiples, it may need to first show some strong initial sales for products using its self-developed technology.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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