Latest news with #ApolloGo
Wall Street Journal
4 days ago
- Automotive
- Wall Street Journal
Chinese Robotaxi Companies Look to the Middle East for Growth
Chinese robotaxi makers want to bring their self-driving cars abroad. Facing regulatory and geopolitical obstacles in some markets, they are finding the welcome mat out in the Middle East. Baidu's BIDU 1.42%increase; green up pointing triangle Apollo Go, WeRide WRD -1.01%decrease; red down pointing triangle and Pony AI PONY -9.40%decrease; red down pointing triangle—the 'Big Three' of China's autonomous driving scene–have announced plans to expand in the Middle East, looking to replicate the success they have had in China. Chinese companies entering the Gulf region are attracted by the area's openness to new technologies. 'The ambitious push by many Gulf authorities towards smart transportation, coupled with the high density of the urban population, makes it a prime location for the deployment of autonomous vehicles,' said Liang Zhang, regional general manager at Baidu's autonomous-driving unit Apollo Go. Saudi Arabia aims to have autonomous vehicles powering 15% of public transport by 2030, while Dubai and Abu Dhabi have similar targets. China-U.S. trade tensions provide Chinese companies with further incentive to seek alternative markets, a trend that began during the first trade war under the Trump administration in 2018. 'The Middle East is a region that is friendly to both the U.S. and Chinese governments, and companies,' said Ming Lee, head of Greater China autos and industrials research at BofA Global. The Middle Eastern governments' tech-forward stance makes for more robotaxi-friendly regulations that resemble China's rather than the stricter approach seen in Europe and the U.S., said James Liu, Deutsche Bank's head of diversified industrials group in Asia. Tapping into the Middle East would also help WeRide, Pony AI and Apollo Go reach the scale that they need to hit profitability. Nasdaq-listed WeRide said in May that it will expand into Saudi Arabia in partnership with Uber Technologies, securing an extra $100 million investment from the U.S. ride-hailing giant. The two already operate a service in Abu Dhabi. Silicon Valley-founded Pony AI has also teamed up with Uber for a Middle East rollout, and is launching driverless taxi services with Dubai's Roads and Transport Authority. Apollo Go plans to deploy 100 robotaxis in Dubai by end-2025 with the transport authority, eyeing at least 1,000 over the next three years. It has a tie-up with United Arab Emirates-based Autogo in Abu Dhabi too. If Chinese robotaxi companies' forays in the Middle East succeed, they can replicate the expansion in other major markets, said BofA Global's Lee. Reaching critical mass won't be easy. Fleet coverage has to grow to cater to demand and reduce waiting times, said Allen Cheng, Goldman Sachs's head of Greater China technology research. China's robotaxi fleet, the world's biggest, stands at about 1,700. In the Middle East, that footprint is even smaller. Public figures on just how many robotaxis Pony AI, WeRide and Apollo Go have in the region aren't available. The region's fragmented geography presents another challenge. 'The robotaxi business is a really localized business,' WeRide Chief Executive Tony Han said after a recent trip to the U.A.E., during which he jetted back and forth between Abu Dhabi and Dubai, talking to officials about regulatory permits and constraints. 'You have to understand local traffic rules, local driving behavior.' Getting the public to accept the safety of driverless cars could also be tricky, even with the support of local authorities. Still, Chinese robotaxi companies have a big advantage over rivals when it comes to the Middle East, thanks to comprehensive supply chains that offer scope to keep lowering costs. Pony AI, WeRide and Apollo Go have all developed robotaxis with an upfront cost of $30,000-$50,000 per vehicle, a fraction of the price of robotaxis from U.S. players such as Alphabet's Waymo, Deutsche Bank's Liu said. If Chinese companies maintain their cost advantage and there aren't any major safety incidents, Deutsche Bank analysts expect to see a strong Chinese presence in non-U.S. markets. As auto supply chains increasingly split into the U.S. versus the rest of the world, it is inevitable that Chinese firms will rise to the top, said Liu. Write to Jiahui Huang at
Time of India
5 days ago
- Business
- Time of India
China robotaxis, Indian pharma among hedge fund top picks at Sohn Hong Kong
Hedge funds revealed their top investment ideas, ranging from Chinese self-driving taxis, an Indian drug retailer, to a Korean nuclear plant builder, at the annual Sohn investment conference in Hong Kong. This year's picks are geographically more diverse compared to last year, suggesting that investors are actively seeking to spread their exposure to counter tariff uncertainties and market volatility. San Francisco-based Flight Deck Capital sees upside potential in Chinese search engine giant Baidu, betting on its fast-growing auto-driving business. Similar to Google's self-driving unit Waymo, Baidu's Apollo Go "is the only robo-taxi player in China that's not dependent on the capital markets to scale," Flight Deck founder and managing partner Jay Kahn said at the conference on Friday. He expects China's taxi and ride-share industry to grow to around $237 billion by 2034, with Apollo taking a 15% market share. But that segment, together with Baidu's cloud business, is currently given zero valuation by the market, he said. Notably, investor optimism on Chinese firms going overseas has not been derailed by the escalating U.S.-China trade war. Hong Kong's Apeiron Capital pitched Chinese ride-hailing company DiDi Global , citing its improving margin at home and its quick market share building in Latin America. Meanwhile Triata Capital is upbeat on Chinese discount e-commerce player PDD, the owner of Temu . "One statistic that a lot of people don't know is that their MAU right now is bigger than Amazon," Triata CIO Sean Ho said, referring to Temu's monthly active users. INDIA Two investors set their sights on India's healthcare space. Singapore's Arisaig Partners favors MedPlus Health Services , a leading pharmacy chain in India, as its private label products strengthen its low-price proposition, widening the gap with competitors. "Inflation is lower, government is focusing on the middle class and consumer spending is coming off a low base. I simply believe this is the time when the consumer space in general will do better," Vatsal Mody, partner and head of India research at Arisaig Partners said in an interview ahead of the conference. India-based hedge fund startup Panvira Management is bullish on Piramal Pharma , a contract development and manufacturing organisation (CDMO), expecting its growth to accelerate to high teens and to benefit from tax rate normalisation. SECURITY AND ACTIVISTS Other emerging hedge funds focused on opportunities in the security sector driven by geopolitical conflicts. Jon Jhun, who manages Management's new Korea-focused fund, chose Hyundai Engineering & Construction , which engages in nuclear plant engineering, procurement and construction (EPC). "Korea dominates the ex-Russia, ex-China nuclear supply chain," he said. Hong Kong's Frontline Global Management picked Spanish defence firm Indra Sistemas, believing the firm will win more European contracts. On the activist investor side, UK hedge fund Palliser Capital disclosed a 3% stake in Japan's Toyo Tire at the event, urging the tire maker to boost shareholder returns by setting a "best-in-class" performance target and releasing its excess capital of about $900 million to shareholders. Seth Fischer's Oasis Management is long Japanese entertainment complex chain Round One , betting it will gain a re-rating as it ventures into the restaurant industry aiming to bring Michelin-quality Japanese food to the U.S.
Globe and Mail
26-05-2025
- Business
- Globe and Mail
Looking for Exposure to Baidu Stock (BIDU) Post Q1 Earnings? Try These Two ETFs
Baidu's (BIDU) growth prospects are driven by AI expansion, cloud computing, and autonomous driving. The company is investing in Ernie Bot AI and cloud services to strengthen its position in China's AI sector. Also, it is expanding its Apollo Go robotaxi operations globally. Thus, investors looking for exposure to BIDU stock may consider investing in these two ETFs: Invesco Golden Dragon China ETF (PGJ) and Global X Social Media ETF (SOCL). Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter It is worth mentioning that Baidu recently beat expectations in Q1, driven by strong growth in AI Cloud and robotaxi expansion. Particularly, AI Cloud revenue surged 42% year-over-year, reflecting rising adoption of Baidu's full-stack AI solutions. Let's take a deeper look at these two ETFs. Invesco Golden Dragon China ETF The PGJ ETF focuses on U.S.-listed Chinese companies, offering exposure to China's technology, consumer, and communication sectors. It tracks the NASDAQ Golden Dragon China Index. Importantly, BIDU accounts for 6.82% of PGJ's total holdings. Some of the top holdings in PGJ ETF include Alibaba (BABA), Yum China (YUMC), and (JD). Overall, the ETF has $148.29 million in assets under management (AUM) and an expense ratio of 0.67%. Over the past year, the PGJ ETF has generated a return of 5.63%. On TipRanks, PGJ has a Moderate Buy consensus rating based on 41 Buys, 28 Holds, and one Sell assigned in the last three months. At $36.52, the average PGJ ETF price target implies 28.05% upside potential. Global X Social Media ETF The SOCL ETF provides exposure to social media companies, tracking the Solactive Social Media Total Return Index. It focuses on high-growth social media companies, including established giants and emerging players. BIDU stock constitutes 4.38% of the ETF's holdings. Apart from BIDU, some of the top stocks in the SOCL ETF are Meta Platforms (META), Pinterest (PINS), and NetEase (NTES). Overall, the ETF has $121.46 million in AUM. Also, it has an expense ratio of 0.65%. The SOCL ETF has returned 6.83% in the past year. Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 51 stocks held, 29 have Buys and 22 have a Hold rating. At $54.46, the average SOCL ETF price target implies a 16.9% upside potential. Concluding Thoughts ETFs provide indirect exposure to BIDU, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider PGJ and SOCL, as these ETFs offer exposure to Baidu stock.
Yahoo
23-05-2025
- Automotive
- Yahoo
Will Tencent Give WeRide the Edge in the Robotaxi Race?
Autonomous driving startup WeRide WRD is shifting into high gear with Tencent Cloud as its co-pilot. The two companies have expanded their strategic partnership to fast-track the commercial deployment of WeRide's Level-4 robotaxi services and boost their reach across global markets. This move builds on a previous collaboration in April 2024. Now, the focus is broader—bringing self-driving technology to everyday users through Tencent's platforms like WeChat and Tencent Maps. Users will be able to hail a WeRide robotaxi directly from Tencent's Smart Transportation Mini Program. Notably, WeRide saw its revenues decline roughly 10% last year to $49 million. By tapping into Tencent Cloud's vast infrastructure and data capabilities, WeRide aims to strengthen both its R&D and commercial operations. With Tencent's cloud and mapping services, WeRide plans to tailor autonomous driving solutions for international markets, where it already holds a first-mover edge. Localized, compliant cloud services will help the company scale up its overseas presence more efficiently and reliably. Additionally, the companies will co-develop a data-driven platform that integrates cloud computing and advanced mapping tools. This platform will support end-to-end data compliance and accelerate the mass production of smart driving technologies. This expanded alliance with Tencent positions WeRide to move faster and further in the competitive autonomous mobility space, both in China and beyond. As the race to commercialize robotaxis intensifies, having Tencent's digital ecosystem and cloud power could be a game-changer. WeRide's deeper collaboration with Tencent is sure to catch the attention of its rivals like Alphabet's GOOGL Waymo and Baidu BIDU. Alphabet's self-driving unit, Waymo, is the leading force in the U.S. robotaxi domain. The company has been operating fully driverless rides in Phoenix, San Francisco, Los Angeles and Austin. Alphabet is betting big on autonomous tech through Waymo, investing heavily in safety, mapping, and in-house AI to maintain its lead. Waymo is providing over 250,000 paid Robotaxi rides each week. In China, Baidu has firmly established itself as a powerhouse in the robotaxi space. Its autonomous ride-hailing service, Apollo Go, now boasts a global fleet of 1,000 vehicles—a major milestone that highlights its growing scale and ambition. As of May, Apollo Go had handled over 11 million ride orders and extended its presence to 15 cities across China. While it continues to grow its Robotaxi footprint at home, Apollo Go is now setting its sights on international markets, signaling Baidu's intent to become a global player in the self-driving race. Shares of WeRide have declined 28% year to date against the industry's growth of 3.2%. Image Source: Zacks Investment Research From a valuation standpoint, WRD trades at a forward price-to-sales ratio of 9.68, way above the industry. It carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for WeRide's 2025 and 2026 earnings implies a year-over-year uptick of 64% and 51%, respectively. Take a look at how estimates have been revised over the past 90 days. Image Source: Zacks Investment Research WeRide stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report WeRide Inc. (WRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Baidu (NasdaqGS:BIDU) Reports Revenue Increase To CNY 32,452 Million In Q1 2025
Baidu recently announced a strong financial performance for the first quarter of 2025, with revenue up nearly 3% and net income surging by 42% compared to the previous year. In addition, the launch of innovative AI products at the Baidu Create 2025 conference underscores the company's commitment to technological advancement. These factors likely added to the positive investor sentiment, contributing to Baidu's stock appreciating by 8% over the past month. While market indices like the Nasdaq Composite gained modestly, Baidu's financial growth and innovative announcements lend significant support to its upward movement. Buy, Hold or Sell Baidu? View our complete analysis and fair value estimate and you decide. Find companies with promising cash flow potential yet trading below their fair value. The recent announcement regarding Baidu's robust Q1 2025 financial performance and innovative AI product launches has implications for future revenue and earnings forecasts. The reported increase in net income and revenue sets a positive tone, suggesting potential for augmented revenue growth driven by their AI cloud advancements and the expansion of ERNIE and Apollo Go. However, analysts have projected a moderate annual revenue growth rate of 4.8% and anticipate a slight decline in profit margins over the next three years. These projections present a cautiously optimistic view of Baidu's future earnings trajectory in light of its current developments. Despite the recent surge in Baidu's share price by 8% following the news, the company's total returns over the last year show a 15.03% decline, highlighting a challenging period for the stock. Relative to its industry, Baidu underperformed over the past year compared to the US Interactive Media and Services industry's 6.6% return, as well as the broader US market, which returned 11.1%. This longer-term performance underscores the volatility and competitive pressures Baidu faces in optimizing its core marketing and AI business lines. In terms of price movement, Baidu's current share price of US$91.23 is trading at a significant discount to the consensus analyst price target of US$110.95, suggesting an upside potential of 17.8%. This discrepancy indicates that while the market may require further justification for this optimistic outlook, the recent financial results and progressive AI initiatives could provide catalysts for future price recovery and alignment with the analyst target. Investors might consider monitoring both the execution of Baidu's strategic initiatives and broader market conditions as they assess future investment opportunities. Gain insights into Baidu's past trends and performance with our report on the company's historical track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:BIDU. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
