Feb 6th 2023 Free Analysis - BAIDU

Hey MPA Investors!

Maybe it’s the bats from last week IYKYK, or the lack of sleep, but I’ve been a day behind for the past week. Trying to get everything done but I’m not missing this analysis because we’re trying to make some money so let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

BAIDU (Stock Ticker: BAIDU) -You might not have heard of this one, unless you’re familiar with Chinese companies. Think of it as the Chinese Google. It’s involved in a lot of different things including artificial intelligence. But it was founded as a search engine and gets the majority of its revenue from ads. One of the big differences between Google and Baidu is the markets they’re in. Google is global and Baidu is focused on the Chinese market. But at 1.4 billion people, that’s not a bad market.

Why BAIDU?

When you need to look something up you more than likely pull up google. But in China google search isn’t allowed. Instead they have Baidu and it’s BIG! In China 84.3% of internet searches are done on Baidu. And with very little competition in its market, it’s not a bad long term bet.

Why we feel there’s a buying opportunity:

1. AI or artificial intelligence. You may have heard this term being thrown around a lot lately and with good reason. It’s one of the “hot topics” of the tech world right now. AI is in a position to revolutionize the internet and Baidu is in a great position to be a leader in the space.

2. Strong revenues. In Q2 their revenue rose 2% which beat analysis. Which might not seem like a huge number but that comes out to a total revenue of approximately $4.57 billion. Their net income grew 16% which beat expectations.

3. Q4 (sep-dec 2022) earnings is going to be reported March 7th 2023 and they’re expected to be strong. They’ve beaten expectations 6 out of the last 8 quarters.

CURRENT PRICE (as of this email): $141.44

TERMS YOU NEED TO KNOW

BETA -   A way of measuring how volatile a stock is. Which means how quickly the stock price changes and hits new highs and new lows in short periods of time. It’s measure with 1 being neutral, above 1 is more volatile and below 1 is less volatile. Volatile stocks pose a greater investment risk.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

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See you on Thursday!Thibaud & PhilipFun fact about the stock market: There is a 70% chance the stock market will go up in any particular year, and only about 30-40% odds of it going down.