Baidu, Inc. (BIDU) – Open Source for Self-Driving Technology

Baidu stock (NASDAQ:BIDU) gained more than 2%, to roughly $176 per share, in midday trading today due to reports that the Chinese tech giant is open-sourcing its self-driving car technology. This endeavor, referred to as "Apollo" by Baidu, is its latest effort to solidify its position as a leader of innovation on a global level. If successful, automakers will be able to integrate Baidu's self-driving platform into any future car models of their choosing.

Roller-coaster Ride for Baidu Stock Over the Past Year

Baidu's stock has experienced significant whiplash over the past year. Shares peaked in late September, reaching about $196 per share. The stock then quickly retreated to the $160's price range. The 52-week low for the stock was near the end of June when it was trading close to $156 per share.

Baidu Going Forward

While this strategic move is a great form of diversification for the company, its stock is more likely going to trade with the overall markets and earnings reports. This open-source initiative for self-driving cars will take a considerable amount of time for the company to continue to develop and for automakers to safely integrate into vehicles. Nonetheless, Wall Street certainly favors these types of business-level strategies compared to initiatives like Baidu's online-to-offline (O2O) spending.

BIDU Stock Rating

The Stock Trader Blog is adding Baidu stock to our Bullish List. This stock appears to trade at a relatively conservative level when growth opportunities are factored in on a conservative basis. Furthermore, the technical indicators suggest bullish sentiment by the investment community. Shares of Baidu have a low beta, but a large part of this is likely due to currency effects and lower correlation between the US and Chinese financial markets. Perhaps most importantly, Baidu has been a top pick for some of the best money managers/traders in the world.

Eric Bruin

Eric Bruin

Founder. Kelley School of Business '17. Write about stocks and business news. Contact for business inquiries or to write articles for The Stock Trader Blog.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: