Baidu's AI Chatbot Ernie 4 Is Off To A Good Start, Says Bullish Analyst
Portfolio Pulse from Priya Nigam
Baidu Inc (NASDAQ:BIDU) shares rose after reporting strong Q3 results and starting monetization of its AI chatbot, Ernie. Mizuho Securities analyst James Lee maintains a Buy rating and a $140 price target. Despite macro headwinds, Baidu's operating income exceeded expectations due to improved Cloud profitability and cost management. The company's Ernie 4 chatbot, comparable to GPT4, has begun generating revenue shortly after launching a subscription plan. Lee expresses increased confidence in Baidu's FY25 Core EBITDA projections.
November 22, 2023 | 5:50 pm
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Baidu's strong Q3 results and successful start in monetizing its AI chatbot Ernie 4 have led to a positive outlook from analysts, with shares rising 6.56% to $120.86.
The positive earnings report and the successful launch of a revenue-generating product, Ernie 4, have likely contributed to the stock's rise. The analyst's reiteration of a Buy rating and a high price target supports the potential for continued positive performance in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100