Baidu's Search Engine is #2 Behind Google --- $BIDU

If you want to understand financials like me then watch this video several times: https://www.youtube.com/watch?v=5NdZdPVGK4A

Baidu's Search Engine is #2 Behind Google --- $BIDU //// Let me show you how to sift through Baidu’s income statement and statement of cash flows to understand their financials really well. We can run my discounted cash flow model together to see if the stock is a buy or a sell. We are also analyzing the financial ratios to see how they compare to their competitors. We will look at the debt of the company and equity. We will also calculate the WACC (weighted average cost of capital) so we can discount the future cash flows. Let's also look to see if the company is paying a dividend.

0:00 Opening
0:23 High Level Company Detail
3:01 Financial Review
7:07 Capital Structure
7:43 Valuation Results
8:42 More info
10:39 Financial Ratios
12:58 Competitor Analysis
13:53 Closing

This video is not investment advice. It is for entertainment purposes only. It is my opinion using publicly available information. Seek a duly licensed professional for investment advice.

PATREON: https://www.patreon.com/scottsstock

- Baidu is similar to Google but it is focused on the Chinese market where Google is in almost every country. Baidu is the 4th largest website in the world. It is the 2nd largest search engine in the world behind Google. In September, Baidu's MAUs reached 607 million, up 12% year over year.

- It generates 61% of its revenue from selling ad space on its website similar to Google adwords. 24% of its revenue is from iQiYi which is like Netflix but only available in China. It features original content & a library of professional content as well as user-generated programs. It has tv shows, movies, kids programs, documentaries, animations, sports programs. etc. There are 100mn paid subscribers & another 100mn using the free service. Netflix has 200mn members and Disney plus has 100mn. The main difference with iQiYi is that it offers a free service with a large amount of content but if you pay you receive premium content. Netflix & Disney plus do not offer any free services. 15% of Baidu's revenue is from its AI or artificial intelligence segment which has the potential to be its leading revenue generator in the near future. The company mentions its strategy is to invest heavily in technology and scale its AI cloud business. It currently has 8% of the cloud market but it is so much easier to grow different business segments when you have such a large amount of people already using their your engine. For ex: if a new cloud company came out it would an be uphill battle trying to get people to use their service because no one knows who they are. In Baidu's case everyone in China knows them so it is a million times easier to attract customers to its cloud service or any other service if offers. To further improve its AI revenue the company is investing heavily into autonomous driving and the robo taxi industry. Baidu holds more patents in this category than any other company in China. The CEO said in 3 years our AI business may exceed our advertising business.

- The company is headquartered in Beijing, China and was founded in 2000

- The tickers trades on the Nasdaq, Mexican Bolsa, Deutsche Borse, Vienna, Swiss, Lima, Bulgaria, Hong Kong, Buenos Aires & LSE,

Please subscribe to my channel:

Discord: https://discord.gg/X4uM3kU3yZ

If you'd like me to do a: (i) custom valuation for a stock of your choice for $9.99 per month or (iii) show your support for this channel for $0.99 per month, you can become a member by clicking on the link below:

Website I use to gather financial information:

[email protected]

Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.

This video is not investment advice. It is for entertainment purposes only. It is my opinion using publicly available information. Seek a duly licensed professional for investment advice.
Be the first to comment