November 9th news, recently, the well-known American investment research company Zacks released a research report saying that the progress of mobile ecology and AI business will become a key catalyst for Baidu's revenue growth. Baidu's Q3 revenue is expected to increase to 3.92 billion US dollars, exceeding expected.
Zacks said that with the support of Baidu's AI technology, Baidu's mobile ecosystem is providing users with a better service experience. In the past few years, Baidu AI technology has become the core driving force for the rapid growth of Baidu App. As of September, Baidu App has more than 230 million daily active users, and the user login rate exceeds 67%. While the number of users continues to increase, Baidu's mobile user satisfaction has also continued to increase. According to data released by Baidu in May, the first satisfaction rate of Baidu App search results has increased to 58% in the past year. The benefits of
's huge number of users and user satisfaction are also reflected in the financial report data. According to the financial report for the second quarter of 2020, Baidu’s revenue was 26.03 billion yuan, of which Baidu’s core rebounded significantly, achieving revenue of 18.93 billion yuan, an increase of 24% over the previous quarter, and Baidu’s app revenue increased for two consecutive quarters.
At present, artificial intelligence is in the industry's explosive period. In the report, Zacks focused on the development of Baidu's AI business. The agency believes that both Xiaodu and Apollo have achieved breakthrough progress in the past quarter.
At the end of September, Baidu's high-quality asset smart life business group business (hereinafter referred to as Xiaodu Technology) completed independent financing, and its post-investment valuation reached about 20 billion yuan, boosting the capital market's confidence in Baidu. At the specific business level, Xiaodu Technology also released a new product of true wireless smart headphones. Zacks said that this product is expected to expand Baidu's reach from smart speakers and smart screens to new applications, which will help the company's revenue growth.
Judging from Apollo's recent business development, Zacks believes that Baidu is expected to benefit from the expansion of Apollo Go Robotaxi services. Apollo self-driving is accelerating its commercialization. In September, Apollo announced that it will officially open the self-driving taxi service Apollo Go in Beijing and launch 40 self-driving taxis. The total length of the open autopilot manned test area is about 700 kilometers, covering nearly 100 stations. Prior to this, Baidu had opened Apollo Go services in Changsha, Cangzhou and other cities.
According to Zacks analysis, in the past four quarters, Baidu's stock has exceeded the expected earnings by 47.1% on average. Among them, Baidu's non-GAAP earnings per share in the second quarter were 2.08 US dollars, far exceeding the 69 cents commonly expected by Zacks. Judging from the progress of related businesses this quarter, Zacks believes that Baidu will continue its previous performance in the third quarter of this year, with earnings exceeding expectations, and it is a Chinese concept stock that is very worthy of attention.
