Interesting comments on article from SA poster Jeremy 94
Jeremy94
30 Nov. 2021
Great article to read and nice follow up from your last article (recently). Very thorough and we’ll written. Your article went deeper into AI and rightfully so. That’s the future and that’s where Baidu is investing its cash flow. To say the AI opportunities are endless must be exciting for a company like Baidu who has spent years and tons of money planning for a future world where AI will play a critical role in almost everything we do. AI estimates I’ve read range from a market size anywhere between (50-80 TRILLION)! That’s Unbelievable-one can’t even wrap there ahead around that size of market and potential. That’s just AI!!! I could go on for hours!!
-What about autonomous driving and Apollo-everyone is scared of self driving vehicles and can’t imagine themselves one day sitting in an autonomous vehicle because of safety concerns, so just think about this—Imagine a transportation experience so safe you don’t have to worry about people being killed by drunk drivers anymore (because autonomous vehicles don’t drink), or wrong way drivers killing innocent people (this happens quite a lot), or people who fall asleep at the wheel killing themselves and innocent drivers (autonomous vehicles don’t sleep), or road rage drivers killing innocent people or even following them home (they don’t have egos or have a temper if someone cuts them off)! So by eliminating all of the above pain and suffering from human error (the occasional mishap or accident that may or may not happen with an autonomous vehicle)-dramatically reduces the risk of injury or death while driving in the future and Baidu is right there leading the change!! Not to mention making driving in large cities and heavily populated countries more efficient and cost saving!!!
No wonder the Chinese government is all in on this technology and Baidu is leading the way-with as many people as they have in their country to move around safely and efficiently this technology is extremely important for Chinas future. You don’t hear or see as much of this going on here like in china. I love the fact Baidu is in China, because their government is supporting and leading the way for a company like Baidu to grow a lot in the future using this technology! How can you not be excited owning a company like that!!! Yes there’s risk there’s always risk that’s investing 101-(when I owned chipotle stock there was always a risk somebody was going to get sick again and the stock would tank and you’ld be back to square one)!!
The real risk was Baidu not investing and getting ahead of this technology years ago and getting left behind and basically left for dead. Nothing but a basic search engine with no growth, but thankfully that didn’t happen!!! They Instead put all their free cash flow into research and development to get us to where we are today and boy was that ever the genius move!!
-If you had done your research you would realize it’s extremely difficult for a company to go to zero. It doesn’t happen very often even for the ones that are doing bad or reporting fictitious numbers or heavily in debt! They always seem to escape going bankrupt or at least going to zero. A good case is lumber liquidators years ago the famous hedge fund manager Whitney Tilson was going to short that stock all the way to zero and had a good reason to. They had Formaldehydes (cancer causing) in a lot of their products and had lied to consumers and yet that stock didn’t go to zero even with all the lawsuits and litigation piling up. Seeing that the stock wasn’t going to go down any further Whitney Tilson covered his short and since that time they’ve rebranded, restructured and the stock roared back again into the 40’s at one point last year!!
Or take Bill Ackman (another famous hedge fund manager) trying to short Herbalife the (so-called pyramid scheme company) to zero how did that work out for him not to well he covered his short and its stock never got close to zero! My point in all this is that stocks don’t go to zero very easily, occasionally yes, but not very often so enough of that talk with Baidu (I’ll bet the farm against that happening especially with all the above catalysts mentioned)!!!
In the world of investing it pays to have a good memory and to read a lot that’s how you keep the fear for making you sell your stock and run from a good company only to look back years from now and kick yourself for not sitting tight)!!!
-with Baidu there’s no guessing game you know AI and autonomous vehicles is happening it’s not a fad it’s not a dream it’s not a maybe it’s happening and it’s gonna happen in a big way. The world is moving forward, technology is changing every day the fact that Baidu spent years not strictly focusing on profit margin‘s or return on capital or artificially boosting its EPS just to make short term traders happy (Cathy woods talked a lot about this recently), but rather so they could prepare for this technology disruptive moment unlike anything we have ever seen in our life times!
I would call that a genius move by Robin Li and management (definitely future thinking). Plus all the other areas (health, search, robotics, etc,,) that the author mentioned tells me one thing loud and clear-For Baidu, the best is coming without a doubt in my mind!! When will all this happen nobody knows (I certainly couldn’t tell you I don’t have a crystal ball or try to make stock forecasts), but I can tell you one day out of the blue when you least expect it-Baidu’s stock will move much much higher and most people will have missed it, because they’re trading in and out of it trying to time the market and that’s a losing game. So either buy and sit tight or sell and look back later in regret like most people who chase quick profits and try and time the market-no thanks.
Lastly, it’s sad a great article like this gets only 7 comments on day one, Whereas an article by another author that came out today titled Alibaba and the possibility of de-listing gets over 200 comments in one day-why??? because people love spreading fear and spreading Nonstop FUD and bad mouthing China this and China that-no wonder a lot of investors don’t make the big money that’s right under their noses-to much fear and noise!!! Just compare how the negative articles about China gets lots of comments but the positive articles get very few that’s what I’ve noticed for awhile! JMHO
Best of luck and Go Baidu!! |
