$BIDU | Allocation | Market Exec |

2024년 9월 5일

Technical Confluences:
- Price is considered at Oversold conditions in the D1, Weekly and Monthly Timeframes
- Taking a Fibonacci Retracement from the beginning to the high of BIDU, price action is now at the 78% Fibo retracement
- Price levels coincides with a Demand Zone which has been a strong demand zone over many years every time these levels are tested

Fundamental Confluences:
- BIDU is referred to as the 'Google of China' and has been diversifying it's offering into AI, cloud services and autonomous driving tech.
- Locally, they are up against Tencent and Alibaba in the digital ads, AI and cloud services but on a global scale, Google and Microsoft are there against them
- Being 'Google of China' gives them the brand recognition and giant user-base helping ads revenue
- Financially, they have been reinvesting most of their profits back for R&D and business expansion which for me, is important for Baidu to leave their mark strongly and remain competitive globally.
- Recent earnings showed that they missed Revenue slightly but it's higher than previous Revenue results; EPS has beaten estimates most of the time as well
- However, Baidu has high reliance on the Chinese market and makes them vulnerable to economic downturns or regulatory matters which is the current situation for them now

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BIDU is a long-term hold for me and considering it's value has dropped, it could be a value play at 9x forward earnings.

I have previously got my first entry into it early August. Prices is still pretty much at the same levels. I will still look to add on more in the Target Zone area and hold onto it for now

Will revisit it again later on but it's still allocation period for me.

If price breaks below 70 then, I may reconsider re-shifting my target buy levels

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