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2021-04-23

Time to buy?

U.S. stocks drop on news of Biden tax proposals

2021-04-30

Up, up and away

S&P 500 notches record close after strong earnings from Facebook and Apple

2021-04-29

Way to go!!!

Apple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks

2021-04-28

Hold position for now

Ant Group's fast-tracked IPO prompts Chinese probe

2021-05-04

Why???

Bill Gates and Melinda Gates are splitting up after 27 years

2021-05-03

Is it good time to buy now?

4 Reasons Baidu Could Make You Rich

Go to Tiger App to see more news

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The two will keep working together on philanthropic efforts, which have addressed education, gender equalit","content":"<div>\n<p>KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts....</p>\n\n<a href=\"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bill Gates and Melinda Gates are splitting up after 27 years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBill Gates and Melinda Gates are splitting up after 27 years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-04 07:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts....</p>\n\n<a href=\"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MSFT":"微软"},"source_url":"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1147234999","content_text":"KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts.Financial implications are not immediately clear.Bill Gates, co-founder and former CEO ofMicrosoft, and his wife, Melinda French Gates, said on Twitter on Monday that they will split up after 27 years. The two will keep working together on philanthropic efforts, which have addressed education, gender equality and health care.\"After a great deal of thought and a lot of work on our relationship, we have made the decision to end our marriage,\" Bill and Melinda Gates wrote in a statement that Bill Gatestweeted out.“Over the last 27 years, we have raised three incredible children and built a foundation that works all over the world to enable all people to lead healthy, productive lives. We continue to share a belief in that mission and will continue our work together at the foundation, but we no longer believe we can grow together as a couple in this next phase of our lives. We ask for space and privacy for our family as we begin to navigate this new life.”The decision reflects a personal change at the top of American business.Bill Gates led Microsoft as CEO from its founding with Paul Allen in 1975 until 2000, leaving Steve Ballmer to run the company, while Bill Gates became chairman and chief software architect. In 2008 Gatesgave up his day-to-day roleat the company to spend more time on the nonprofit Bill and Melinda Gates Foundation.Last year Bill Gatesstepped downfrom Microsoft’s board asthe coronavirusbecame a force around the world. He began spending more time on the foundation alongside Melinda Gates. The two are co-chairs and trustees of the foundation, which launched in 2000.Bill and Melinda Gates both worked at Microsoft. She had been a general manager at the software company, where she worked on products such as the Encarta encyclopedia, according to herLinkedIn profile. The two met at a dinner for Microsoft employees in 1987. “It took him quite a few months before he asked me out,” Melinda Gateslater said. Bill Gates hadweighed the pros and cons on a blackboard, and in 1994 the couple were married in Hawaii.Financial details of the Gateses parting ways are not yet clear. Bill Gates owns 1.37% of Microsoft’s outstanding shares, which are worth more than $26 billion, according to FactSet. The couple were creators, along with Warren Buffett, of theGiving Pledge, a program that requires participants to give away more than half of their wealth.At one point the couple decided to move $20 billion worth of Microsoft stock to the foundation as they sought to increase their commitment to philanthropy, Bill Gates wrote in a 2019blog post. Today the foundation has more than $51 billion in assets, according to a tax filing, making itone of the world’s wealthiest foundations.“In the case of Melinda, it is a truly equal partner,” Bill Gates said in the 2019 Netflix documentary “Inside Bill’s Brain.” “She’s a lot like me in that she is optimistic and she is interested in science. She is better with people than I am. She’s a tiny bit less hardcore about knowing, you know, immunology, than I am.”In 2015 the two began pursuing areas they were interested in. Bill Gates established Breakthrough Energy, an initiative to slow climate change that includes a venture arm, and Melinda Gates created Pivotal Ventures, a company that makes investments to foster equality.For Valentine’s Day in 2020, Bill Gates posted a photoon Instagramshowing him standing with his arm around Melinda Gates. “I couldn’t ask for a better partner on this journey,” the caption said.Each year for more than a decade the Gateses have published a letter about their foundation work. In thelatest one, published in January, they reflected on the impact of the pandemic, beyond supporting the development of vaccines. “For us, the days became a blur of video meetings, troubling news alerts, and microwaved meals,” they wrote.Bill Gates is the world’s fourth richest person, behindAmazon’sJeff Bezos, LVMH’s Bernard Arnault and Tesla’s Elon Musk, according toForbes.The announcement comes two years after Bezos said he and his wife, MacKenzie, weregetting divorced. Bill Gates and Jeff Bezos are among the world’s richest people, and Amazon and Microsoft compete in the cloud computing business. Amazon said earlier this year that Bezos would be stepping down from his post as CEO and that cloud chief Andy Jassywould succeed him.","news_type":1},"isVote":1,"tweetType":1,"viewCount":287,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":108615953,"gmtCreate":1620017962672,"gmtModify":1704337455239,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Is it good time to buy now?&nbsp;","listText":"Is it good time to buy now?&nbsp;","text":"Is it good time to buy now?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/108615953","repostId":"1121605010","repostType":4,"repost":{"id":"1121605010","pubTimestamp":1620014543,"share":"https://ttm.financial/m/news/1121605010?lang=&edition=fundamental","pubTime":"2021-05-03 12:02","market":"hk","language":"en","title":"4 Reasons Baidu Could Make You Rich","url":"https://stock-news.laohu8.com/highlight/detail?id=1121605010","media":"seekingalpha","summary":"Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P","content":"<p><b>Summary</b></p>\n<ul>\n <li>Strong corporate earnings and great economic data keeps the market grinding higher. The S&amp;P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.</li>\n <li>Fortunately, whatever your goals, yield, value, growth, or total returns, something great is always on sale if you know where to look.</li>\n <li>Baidu is the Google of China, and planning on increasing spending by 30% annually over the coming years, focusing on AI, driverless cars, and streaming.</li>\n <li>In recent weeks it plunged 40%, partially due to forced hedge fund margin call selling. This creates a potentially exceptional opportunity to be \"greedy when others are fearful\" about this speculative hyper-growth blue-chip.</li>\n <li>I recently bought a starter position in Baidu, because it's 31% undervalued and analysts think it could double in the next three years, and almost triple over the next five. For anyone comfortable with the complex risk profile of Chinese tech giants, Baidu is one of the most reasonable and prudent hyper-growth blue-chips you can buy today.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fce5597f98f5e2431c73edea32173192\" tg-width=\"1536\" tg-height=\"693\"><span>Photo by DNY59/iStock via Getty Images</span></p>\n<p>Over seven years as an analyst I've studied the greatest investors in history, to see what strategies made them legends.</p>\n<p><b>Greatest Investors In History: Masters Of Financial Science</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Name</b></td>\n   <td><b>Returns</b></td>\n   <td><b>Time Horizon</b></td>\n   <td><p><b>Most Famous For</b></p></td>\n  </tr>\n  <tr>\n   <td>Jim Simmons (Co-Founder Renaissance Technologies)</td>\n   <td>71.8% CAGR</td>\n   <td>1994 to 2014 (best investing record ever recorded)</td>\n   <td><p>Pure Quant Based Investing</p></td>\n  </tr>\n  <tr>\n   <td>Joel Greenblatt</td>\n   <td>40% CAGR</td>\n   <td>21 years at Gotham Capital</td>\n   <td><p><b>\"Above-Average Quality Companies At Below-Average Prices\"</b></p></td>\n  </tr>\n  <tr>\n   <td>Peter Lynch</td>\n   <td>29.2% CAGR at Fidelity's Magellan Fund</td>\n   <td>1977 to 1990 (13 years)</td>\n   <td><p><b>\"Growth At A Reasonable Price\"</b></p></td>\n  </tr>\n  <tr>\n   <td>Bill Miller (Legg Mason Value Trust 1990 to 2006)</td>\n   <td>22.8% CAGR and beat the S&amp;P 500 for 15 consecutive years</td>\n   <td>16 years</td>\n  </tr>\n  <tr>\n   <td>Warren Buffett</td>\n   <td>20.8% CAGR at Berkshire</td>\n   <td>55 Years</td>\n   <td><p><b>Greedy when others are fearful</b></p></td>\n  </tr>\n  <tr>\n   <td>Benjamin Graham</td>\n   <td>20% CAGR vs 12% S&amp;P 500</td>\n   <td>1934 to 1956 (22 years)</td>\n   <td><b>Margin of Safety</b></td>\n  </tr>\n  <tr>\n   <td>Edward Thorp</td>\n   <td>20+% CAGR</td>\n   <td>over 30 years</td>\n   <td><p>invented card counting,<b>pure statistically-based investing</b></p></td>\n  </tr>\n  <tr>\n   <td>Charlie Munger</td>\n   <td>19.80%</td>\n   <td>1962 to 1975</td>\n   <td><p><b>Wonderful companies at fair prices</b></p></td>\n  </tr>\n  <tr>\n   <td>Howard Marks</td>\n   <td>19% CAGR</td>\n   <td>Since 1995</td>\n   <td><p><b>Valuation Mean Reversion</b></p></td>\n  </tr>\n  <tr>\n   <td>Anne Scheiber</td>\n   <td>18.3% CAGR</td>\n   <td>50 years</td>\n   <td><p>Turned $5K into $22 million with no formal training, purely with<b>tax-efficient buy and hold blue-chip investing</b>.</p></td>\n  </tr>\n  <tr>\n   <td>John Templeton</td>\n   <td>300% from 1939 to 1943, 15.8% CAGR from 1954 to 1992</td>\n   <td>38 years</td>\n   <td>Market Cycles</td>\n  </tr>\n  <tr>\n   <td>Carl Icahn</td>\n   <td>14.6% CAGR vs 5.6% S&amp;P 500</td>\n   <td><p>2001 to 2016 (15 Years)</p></td>\n  </tr>\n  <tr>\n   <td>David Swenson</td>\n   <td>13.9% CAGR at Yale's Endowment (includes bonds and alternative assets) vs 10.7% S&amp;P 500</td>\n   <td>30 years</td>\n   <td><p>Alternative Asset Allocation</p></td>\n  </tr>\n  <tr>\n   <td>Geraldine Weiss</td>\n   <td>11.2% vs 9.8% S&amp;P 500</td>\n   <td>37 years</td>\n   <td><p><b>Best risk-adjusted track record</b>of any newsletter over 30 years according to Hubbert Financial Digest, popularized<b>dividend yield theory</b>(the only strategy she employed)</p></td>\n  </tr>\n </tbody>\n</table>\n<p>Combining these lessons, along with decades of market studies from leading research institutions and blue-chip analyst firms, I've determined that there are six fundamentals that over the long term will make you rich (assuming you have discretionary savings to invest of course).</p>\n<ul>\n <li>Portfolio risk-management</li>\n <li>safety</li>\n <li>quality</li>\n <li>yield</li>\n <li>growth</li>\n <li>and value</li>\n</ul>\n<p>When combined with patience, time, and discipline, these are what made the greatest investors in history the legends they are today.</p>\n<p>You and I may never match the returns of the legends, but if we practice disciplined financial science we can avoid costly mistakes, and focus on the highest probability/low-risk blue-chips.</p>\n<blockquote>\n It's remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.\" - Charlie Munger\n</blockquote>\n<p>These are the \"consistently not stupid\" decisions that made Charlie Munger and Warren Buffett so successful.</p>\n<p>Today I want to explain why I've recently opened a starter tracking position in speculative hyper-growth blue-chip Baidu (BIDU).</p>\n<p><img src=\"https://static.tigerbbs.com/d78b7d254783a9f8afc60962aa7d03ee\" tg-width=\"640\" tg-height=\"390\"></p>\n<p>All Chinese tech giants are suffering a bear market right now. But notice how Baidu recently fell 40% in a matter of weeks.</p>\n<blockquote>\n Baidu was also held by now-infamous hedge fund Archegos Capital Management at that time, which blew up during the same week. When the highly levered Archegos was unable to meet a margin call, banks seized Archegos' assets, including Baidu, and sold them off in massive blocks, accelerating Baidu's plunge.\" -Motley Fool\n</blockquote>\n<p>Institutional forced selling is one of the best opportunities for prudent long-term investors to buy the world's highest quality companies at mouth-watering prices.</p>\n<p><img src=\"https://static.tigerbbs.com/e09c272fe0a5f7a5052ea3021630d643\" tg-width=\"640\" tg-height=\"390\"></p>\n<p>Lowe's (LOW) and Realty Income (O) both plunged 25% on March 16th, due to institutional forced selling.</p>\n<p>In other words, when hedge funds get margin calls, they become the ultimate dumb money. Taking the other side of those trades can be the way to earn Buffett-like returns, through buying and holding blue-chip investing.</p>\n<p>So let me explain the four reasons why I consider it time to get greedy when others are fearful on Baidu.</p>\n<blockquote>\n Today I buy what others won't, so tomorrow I earn returns others can't.\"\n</blockquote>\n<blockquote>\n  - Paraphrase of Jerry Rice\n</blockquote>\n<p><b>Reason 1: A Speculative Blue-Chip Quality Company</b></p>\n<p>According to the 2017 study<i>Do Stocks Outperform Treasury Bills?</i>by Hendrik Bessembinder of Arizona State University's W.P. Carey School of Business 52% of all stocks, lose money over time.</p>\n<p>This study looked at 26,000 companies from 1926 to 2016 and found that about 12% went to zero.</p>\n<p><img src=\"https://static.tigerbbs.com/a6f826f65373ae3a2e4061f906c54bb2\" tg-width=\"640\" tg-height=\"508\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5868a6e0418dbe8596b0c667120b3a53\" tg-width=\"640\" tg-height=\"440\"><span>(Source: Bessembinder et al)</span></p>\n<p>From 1926 to 2016 over 3,000 US companies listed on US exchanges went bankrupt. 1,100 or about 4%, delivered 100% of net positive returns. Just 48% of stocks delivered positive returns.</p>\n<p>In other words, safety and quality are what can help you avoid the value traps that don't make any money or lose all of your savings.</p>\n<p>The Dividend Kings quality scores factor in 143 fundamental metrics covering</p>\n<ul>\n <li>dividend safety</li>\n <li>balance sheet strength</li>\n <li>short and long-term bankruptcy risk</li>\n <li>accounting and corporate fraud risk</li>\n <li>profitability and business model</li>\n <li>cost of capital</li>\n <li>long-term sustainability (ESG scores and trends from MSCI, Morningstar, and Reuters'/Refinitiv)</li>\n <li>management quality</li>\n <li>dividend friendly corporate culture/income dependability</li>\n <li>long-term total returns (a Ben Graham sign of quality)</li>\n</ul>\n<p>Our model actually includes over 1,000 metrics if you count everything factored in by eight rating agencies we use to assess fundamental risk.</p>\n<p>Every metric was selected based on</p>\n<ul>\n <li>decades of empirical data</li>\n <li>the experience of the greatest investors in history</li>\n <li>eight rating agencies</li>\n <li>and what blue-chip economists and analyst firms consider most closely correlated to a company's long-term success.</li>\n</ul>\n<p>Baidu's quality is 9/12 speculative blue-chip, meaning I recommend a 2.5% max risk cap position sizing.</p>\n<p><b>Dividend Kings Quality Rating System</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Quality Score</b></td>\n   <td><b>Meaning</b></td>\n   <td><b>Max Invested Capital Risk Recommendation</b></td>\n   <td><b>Margin Of Safety Potentially Good Buy</b></td>\n   <td><b>Strong Buy</b></td>\n   <td><b>Very Strong Buy</b></td>\n   <td><p><b>Ultra-Value Buy</b></p></td>\n  </tr>\n  <tr>\n   <td>3</td>\n   <td>Terrible, Very High Long-Term Bankruptcy Risk</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>4</td>\n   <td>Very Poor</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>Poor</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>6</td>\n   <td>Below-Average, Fallen Angels (very speculative)</td>\n   <td>1%</td>\n   <td>45%</td>\n   <td>55%</td>\n   <td>65%</td>\n   <td>75%</td>\n  </tr>\n  <tr>\n   <td>7</td>\n   <td>Average (Relative to S&amp;P 500)</td>\n   <td>2.5%</td>\n   <td>35%</td>\n   <td>45%</td>\n   <td>55%</td>\n   <td>65%</td>\n  </tr>\n  <tr>\n   <td>8</td>\n   <td>Above-Average</td>\n   <td>5% (unless speculative then 2.5%)</td>\n   <td>25% to 30%</td>\n   <td>35% to 40%</td>\n   <td>45% to 50%</td>\n   <td><p>55% to 60%</p></td>\n  </tr>\n  <tr>\n   <td><b>9</b></td>\n   <td><b>Blue-Chip</b></td>\n   <td>7% (unless<b>speculative</b>then<b>2.5%</b>)</td>\n   <td>20% to<b>25%</b></td>\n   <td>30% to<b>35%</b></td>\n   <td>40% to<b>45%</b></td>\n   <td><p>50% to<b>55%</b></p></td>\n  </tr>\n  <tr>\n   <td>10</td>\n   <td>SWAN (a higher caliber of Blue-Chip)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>15% to 20%</td>\n   <td>25% to 30%</td>\n   <td>35% to 40%</td>\n   <td><p>45% to 50%</p></td>\n  </tr>\n  <tr>\n   <td>11</td>\n   <td>Super SWAN (exceptionally dependable blue-chips)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>10% to 15%</td>\n   <td>20% to 25%</td>\n   <td>30% to 35%</td>\n   <td><p>40% to 45%</p></td>\n  </tr>\n  <tr>\n   <td>12</td>\n   <td>Ultra SWAN (as close to perfect companies as exist)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>5% to 10%</td>\n   <td>15% to 20%</td>\n   <td>25% to 30%</td>\n   <td><p>35% to 40%</p></td>\n  </tr>\n </tbody>\n</table>\n<p>What exactly makes Baidu a speculative blue-chip?</p>\n<p><b>Balance Sheet Safety</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating</b></td>\n   <td><b>Dividend Kings Safety Score (75 Safety Metric Model)</b></td>\n   <td><b>Approximate Dividend Cut Risk (Average Recession)</b></td>\n   <td><p><b>Approximate Dividend Cut Risk In Pandemic Level Recession</b></p></td>\n  </tr>\n  <tr>\n   <td>1 (very unsafe)</td>\n   <td>0% to 20%</td>\n   <td>over 4%</td>\n   <td>16+%</td>\n  </tr>\n  <tr>\n   <td>2 (unsafe average)</td>\n   <td>21% to 40%</td>\n   <td>over 2%</td>\n   <td>8% to 16%</td>\n  </tr>\n  <tr>\n   <td>3 (average)</td>\n   <td>41% to 60%</td>\n   <td>2%</td>\n   <td>4% to 8%</td>\n  </tr>\n  <tr>\n   <td><b>4 (safe)</b></td>\n   <td><b>61% to 80%</b></td>\n   <td><b>1%</b></td>\n   <td><b>2% to 4%</b></td>\n  </tr>\n  <tr>\n   <td>5 (very safe)</td>\n   <td>81% to 100%</td>\n   <td>0.5%</td>\n   <td>1% to 2%</td>\n  </tr>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>76%</b></td>\n   <td><b>A stable rating from Fitch, A3 (A- equivalent) stable rating Moody's</b></td>\n   <td><b>0.66% to 2.5% 30-year default/bankruptcy risk</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Long-Term Dependability</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Company</b></td>\n   <td><b>DK Long-Term Dependability Score</b></td>\n   <td><b>Interpretation</b></td>\n   <td><b>Points</b></td>\n  </tr>\n  <tr>\n   <td>S&amp;P 500/Industry Average</td>\n   <td>58%</td>\n   <td>Average Dependability</td>\n   <td>2</td>\n  </tr>\n  <tr>\n   <td>Non-Dependable Companies</td>\n   <td>31% or below</td>\n   <td>Poor Dependability</td>\n   <td>1</td>\n  </tr>\n  <tr>\n   <td>Relatively Dependable Companies</td>\n   <td>32% to 70%</td>\n   <td>Below to Above-Average Dependability</td>\n   <td>2</td>\n  </tr>\n  <tr>\n   <td>Very Dependable Companies</td>\n   <td>71% to 80%</td>\n   <td>Very Dependable</td>\n   <td>3</td>\n  </tr>\n  <tr>\n   <td>Exceptionally Dependable Companies</td>\n   <td>81% or higher</td>\n   <td>Exceptional Dependability</td>\n   <td>4</td>\n  </tr>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>67%</b></td>\n   <td><b>Above-Average Dependability</b></td>\n   <td><b>2</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Overall Quality</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>Final Score</b></td>\n   <td><b>Rating</b></td>\n  </tr>\n  <tr>\n   <td>Safety</td>\n   <td>76%</td>\n   <td>4/5</td>\n  </tr>\n  <tr>\n   <td>Business Model</td>\n   <td>80%</td>\n   <td>3/3</td>\n  </tr>\n  <tr>\n   <td>Dependability</td>\n   <td>67%</td>\n   <td>2/4</td>\n  </tr>\n  <tr>\n   <td><b>Total</b></td>\n   <td><b>73%</b></td>\n   <td><b>9/12 Speculative Blue-Chip</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Baidu is the 245th Highest Quality Master List Company (Out of 495) = 49th Percentile</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/927ef17638b4bbf9db4e34f1aeb01a61\" tg-width=\"640\" tg-height=\"241\"><span>(Source: DK Safety &amp; Quality Tool) updated at the end of each day, sorted by overall quality score</span></p>\n<ul>\n <li>green = potentially good buy or better</li>\n <li>blue = potentially reasonable buy</li>\n <li>yellow = hold</li>\n <li>red = potential trim/sell</li>\n</ul>\n<p>BIDU's 73% quality score means it's the 245th highest quality company on the DK 500 Master List. This list includes the world's highest quality companies including</p>\n<ul>\n <li>all dividend champions</li>\n <li>all dividend aristocrats</li>\n <li>all dividend kings</li>\n <li>all 12/12 Ultra SWANs (as close to perfect quality as exists on Wall Street, think wide moat aristocrats)</li>\n <li>numerous global aristocrats (such as BTI, ENB, and NVS)</li>\n</ul>\n<p>BIDU is about average quality compared to the world's elite companies and similar in quality to such 9/12 blue-chips and, 10/12 SWANs, as</p>\n<ul>\n <li>Qualcomm (QCOM)</li>\n <li>Becton, Dickinson and Company (BDX) - dividend aristocrat</li>\n <li>W. P. Carey (WPC)</li>\n <li>Sonoco Products (SON) - dividend champion</li>\n <li>H.B. Fuller (FUL) - dividend king</li>\n <li>MetLife (MET)</li>\n <li>Digital Realty Trust (DLR)</li>\n <li>Leggett &amp; Platt (LEG) - dividend aristocrat</li>\n <li>V.F. Corp (VFC) - dividend aristocrat</li>\n <li>Bank of New York Mellon (BK)</li>\n</ul>\n<p>Baidu has a strong cash-rich balance sheet, though it is taking on extra leverage in order to fund its ambitious growth efforts.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4c7bc8d9da039967a0ce9e435f7b6eb\" tg-width=\"449\" tg-height=\"462\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Including leasing expenses, BIDU has 2X as much cash as debt.</p>\n<p>Fitch and Moody's rate Baidu A stable and A3 (A- equivalent) stable outlooks, indicating 0.66% to 2.5% 30-year default/bankruptcy risk.</p>\n<p>Analysts expect much higher spending in the short-term to cause leverage to increase, though rating agencies don't expect this to be permanent.</p>\n<p>The key safety ratios with Baidu are the F, Z, and M scores, advanced accounting ratios created by leading research institutions that use asset ratios scanned from quarterly filings.</p>\n<ul>\n <li>F-score measures short-term bankruptcy risk</li>\n <li>Z-score measures 2-year bankruptcy risk (with 84% to 92% historical accuracy)</li>\n <li>M-score measures accounting fraud risk (with 76% historical accuracy)</li>\n</ul>\n<p>7/9 is very safe on the F-score = very low short-term bankruptcy risk.</p>\n<p>3.59 vs 3+ very safe and 9.51 historical, confirms the A-credit ratings and low long-term risk of losing all your money.</p>\n<p>And the M-score of -2.42 indicates a significantly less than 17.5% probability that Baidu is cooking its books.</p>\n<p><img src=\"https://static.tigerbbs.com/0593cdfc392caf38a9d7ca42c482c359\" tg-width=\"640\" tg-height=\"245\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6110ac3a73c5c935e0778da21e6eb62e\" tg-width=\"640\" tg-height=\"297\"><span>(Source: Gurufocus)</span></p>\n<p>BIDU's historically unsafe M-score has been improving and became safe at the end of 2014 and has remained so for the last seven years.</p>\n<ul>\n <li>its safety and quality score still get dinged though because we factor in every important metric so we don't miss any warning signs</li>\n</ul>\n<p>The M-score is 76% historically accurate at catching accounting fraud and 82.5% accurate at finding companies with honest accounting.</p>\n<p>Combined with its credit ratings and risk ratings from 5 different rating agencies, plus its auditors, I can say with relatively high confidence that Baidu is not the next Luckin Coffee.</p>\n<p>Quality is a proven alpha factor, one of seven that beats the market over the long term.</p>\n<p><img src=\"https://static.tigerbbs.com/d4868372d29cef8d5b07fc5a538fb58e\" tg-width=\"640\" tg-height=\"273\"></p>\n<p>On Wall Street, profitability over time is the most accurate proxy for quality.</p>\n<ul>\n <li>credit ratings are one of the best qualitative quality proxies</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b0c8a6a2913d554a5c9780f869d7a887\" tg-width=\"445\" tg-height=\"430\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Baidu's profitability is historically in the top 20% of its peers, confirming a wide and stable moat.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>Industry Percentile</b></td>\n   <td><b>Major Interactive Media Companies More Profitable Than BIDU (Out of 543)</b></td>\n  </tr>\n  <tr>\n   <td>Operating Margin</td>\n   <td>67.35</td>\n   <td>177</td>\n  </tr>\n  <tr>\n   <td>Net Margin</td>\n   <td>81.26</td>\n   <td>102</td>\n  </tr>\n  <tr>\n   <td>Return On Equity</td>\n   <td>67.86</td>\n   <td>175</td>\n  </tr>\n  <tr>\n   <td>Return On Assets</td>\n   <td>68.47</td>\n   <td>171</td>\n  </tr>\n  <tr>\n   <td>Return On Capital</td>\n   <td>69.61</td>\n   <td>165</td>\n  </tr>\n  <tr>\n   <td><b>Average</b></td>\n   <td><b>70.91</b></td>\n   <td><b>158</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: Gurufocus Premium)</i></p>\n<p>Over the last year, increased growth spending has reduced profitability to the top 29% of peers, though that's expected to recover in the future.</p>\n<ul>\n <li>for example, returns on equity are expected to rise 10% by 2024</li>\n</ul>\n<p>Joel Greenblatt defined quality by return on capital, his gold standard proxy for quality and moatiness.</p>\n<ul>\n <li>operating income (EBIT)/operating capital (the money it takes to run the business for a year)</li>\n</ul>\n<p>Greenblatt's entire legendary track record, 40% annual returns for 21 years, was done by combining high ROC with low valuations.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a5d43fa9d5032a24362f75054f2a9e93\" tg-width=\"640\" tg-height=\"292\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Even with heavy growth spending in recent years, Baidu's returns on capital are very impressive.</p>\n<p>The average Master List company has 88% ROC.</p>\n<p>The average aristocrat 83%.</p>\n<p>The average Ultra SWAN 87%.</p>\n<p>Over the past year, BIDU's ROC has been 103% and in Q4 it was 95%.</p>\n<p>Analysts expect that in the next few years, ROC will revert back to its historical 205%.</p>\n<p>A level of profitability that, according to Joel Greenblatt, would make BIDU one of the highest quality companies in the world.</p>\n<p>Baidu's future growth is expected to come from aggressive investments into driverless cars (long-term) and AI and streaming in the short and medium term.</p>\n<p><b>Baidu Growth Spending Consensus Forecast</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>SG&amp;A</b></td>\n   <td><b>R&amp;D</b></td>\n   <td><b>Capex</b></td>\n   <td><b>Total Growth Spending</b></td>\n   <td><b>Sales</b></td>\n   <td><p><b>Growth Spending/Sales</b></p></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>$2,792</td>\n   <td>$3,016</td>\n   <td>$993</td>\n   <td>$4,009</td>\n   <td>$16,548</td>\n   <td>24.23%</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>$3,574</td>\n   <td>$3,554</td>\n   <td>$1,893</td>\n   <td>$5,447</td>\n   <td>$19,517</td>\n   <td>27.91%</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>$3,974</td>\n   <td>$4,062</td>\n   <td>$2,220</td>\n   <td>$6,282</td>\n   <td>$22,235</td>\n   <td>28.25%</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>$5,049</td>\n   <td>$5,858</td>\n   <td>$2,719</td>\n   <td>$8,577</td>\n   <td>$25,258</td>\n   <td>33.96%</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>$1,504</td>\n   <td>NA</td>\n   <td>$30,071</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>2025</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>2026</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>21.83%</b></td>\n   <td><b>24.77%</b></td>\n   <td><b>10.94%</b></td>\n   <td><b>28.85%</b></td>\n   <td><b>16.10%</b></td>\n   <td><b>NA</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Historically Baidu spends about 17% of its revenue on growth. By 2023 that's expected to double.</p>\n<p>Total growth spending is expected to grow at almost 30% annually for the next three years.</p>\n<p>Baidu Consensus Profit Forecast</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>Sales</b></td>\n   <td><b>FCF</b></td>\n   <td><b>EBITDA</b></td>\n   <td><b>EBIT (Operating Income)</b></td>\n   <td><b>Net Income</b></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>$16,548</td>\n   <td>$2,106</td>\n   <td>$4,251</td>\n   <td>$2,216</td>\n   <td>$3,473</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>$19,517</td>\n   <td>$3,947</td>\n   <td>$4,734</td>\n   <td>$2,629</td>\n   <td>$2,760</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>$22,235</td>\n   <td>$5,013</td>\n   <td>$5,812</td>\n   <td>$3,400</td>\n   <td>$3,381</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>$25,258</td>\n   <td>$5,854</td>\n   <td>$6,730</td>\n   <td>$4,163</td>\n   <td>$4,226</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>$30,071</td>\n   <td>$7,421</td>\n   <td>NA</td>\n   <td>$6,195</td>\n   <td>$5,268</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>16.10%</b></td>\n   <td><b>37.01%</b></td>\n   <td><b>16.55%</b></td>\n   <td><b>29.31%</b></td>\n   <td><b>10.98%</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Management's guidance, which is the basis for these consensus forecasts, is for strong revenue growth. Net margins are expected to compress but cash flows are expected to soar.</p>\n<p>Free cash flow, the ultimate source of all intrinsic value according to Ben Graham and Warren Buffett, is expected to more than triple by 2024.</p>\n<p>Baidu Consensus Margin Forecast</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>FCF Margin</b></td>\n   <td><b>EBITDA Margin</b></td>\n   <td><b>EBIT (Operating) Margin</b></td>\n   <td><b>Net Margin</b></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>12.7%</td>\n   <td>25.7%</td>\n   <td>13.4%</td>\n   <td>21.0%</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>20.2%</td>\n   <td>24.3%</td>\n   <td>13.5%</td>\n   <td>14.1%</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>22.5%</td>\n   <td>26.1%</td>\n   <td>15.3%</td>\n   <td>15.2%</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>23.2%</td>\n   <td>26.6%</td>\n   <td>16.5%</td>\n   <td>16.7%</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>24.7%</td>\n   <td>NA</td>\n   <td>20.6%</td>\n   <td>17.5%</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>18.01%</b></td>\n   <td><b>1.23%</b></td>\n   <td><b>11.37%</b></td>\n   <td><b>-4.42%</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Baidu's profitability is ultimately expected to improve, though net margins won't until its major growth initiatives are over.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ee8691866fef56c1dd17062657e10811\" tg-width=\"640\" tg-height=\"320\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU ended 2020 with $5.6 billion in cash, and that's expected to rise to $22 billion by 2023, and potentially nearly $60 billion by 2024.</p>\n<p>That may not be as impressive as some tech companies ($601 billion by 2026 for Amazon), but it does mean that Baidu's war chest and financial flexibility to pivot towards AI, driverless cars, and streaming will grow significantly in future years.</p>\n<p>Baidu Medium-Term Growth Consensus</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>2020 Actual Growth</b></td>\n   <td><b>2021 consensus growth</b></td>\n   <td><b>2022 consensus growth</b></td>\n   <td><p><b>2023 consensus growth</b></p></td>\n  </tr>\n  <tr>\n   <td>EPS</td>\n   <td>31%</td>\n   <td>7%</td>\n   <td>18%</td>\n   <td>16%</td>\n  </tr>\n  <tr>\n   <td>Owner Earnings (Buffett smoothed out FCF)</td>\n   <td>124%</td>\n   <td>22%</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>Operating Cash Flow</td>\n   <td>-14%</td>\n   <td>59%</td>\n   <td>31%</td>\n   <td>7%</td>\n  </tr>\n  <tr>\n   <td>Free cash flow</td>\n   <td>96%</td>\n   <td>85%</td>\n   <td>22%</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>EBITDA</td>\n   <td>-18%</td>\n   <td>53%</td>\n   <td>27%</td>\n   <td>24%</td>\n  </tr>\n  <tr>\n   <td>EBIT (operating income)</td>\n   <td>130%</td>\n   <td>26%</td>\n   <td>26%</td>\n   <td>19%</td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: F.A.S.T. Graphs, FactSet Research)</i></p>\n<p>In the next few years, Baidu's growth efforts are expected to result in strong growth. But what's attracted me to the Google of China, is that this hyper-growth is expected to continue for many years to come.</p>\n<p><b>Reason 2: Long-Term Hyper-Growth Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdfa536609dc32efe57d7af85154ddbf\" tg-width=\"640\" tg-height=\"412\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU's AI, streaming, and driverless car investments are showing up in \"other services\" and that revenue is expected to grow almost 50% in 3 years.</p>\n<p><img src=\"https://static.tigerbbs.com/d0a582df968d9cfaf4a09f2f2984f522\" tg-width=\"640\" tg-height=\"373\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/72ab775d253a2fbce4a1a5001922e0b8\" tg-width=\"640\" tg-height=\"394\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<ul>\n <li>16.0% to 17.5% long-term growth consensus range</li>\n <li>6% to 28% growth consensus range adjusted for historical margin of error</li>\n</ul>\n<p><img src=\"https://static.tigerbbs.com/6ae4ef54819e7f58c95b2f21ced20393\" tg-width=\"640\" tg-height=\"336\"><img src=\"https://static.tigerbbs.com/705d5218e7d882c4c52948d4f47fbb5e\" tg-width=\"640\" tg-height=\"341\"></p>\n<p>The margins of error on BIDU forecasts are very wide. 33% of the time it grows much faster than expected, 33% of the time much slower, and 33% of the about as fast as expected.</p>\n<ul>\n <li>margins of error over the last decade (excluding outliers) are 60% to the downside, 55% to the upside</li>\n <li>the long-term growth consensus range: 16% to 18% CAGR</li>\n <li>the margin of error adjusted long-term analyst growth consensus range: 6% to 28% CAGR</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/73c38a8847c12ffd67928559c978ff18\" tg-width=\"640\" tg-height=\"407\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>BIDU's historical growth is from -9% to 52%. So relatively high growth uncertainty, more so than most tech blue-chips.</p>\n<ul>\n <li>and thus the $650 investment vs $10K in GOOG, $89K in BABA, and $200K in Amazon</li>\n</ul>\n<p>However, analysts expect growth to be similar to the 20% growth of the last decade.</p>\n<p>And at today's high margin of safety, we're likely getting a good deal to compensate for BIDU's growth uncertainty and complex risk profile.</p>\n<p><b>Reason 3: Highly Attractive Valuation</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f3ad1e7e41458b1bdc4f379d7917692\" tg-width=\"640\" tg-height=\"414\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>BIDU growing at the rates analysts expect in the future has historically been valued at 23X to 26X earnings.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fbd2ab20e70f34f53bc7768feb9b6a24\" tg-width=\"640\" tg-height=\"334\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU is currently trading at 20.4X forward earnings and 13.6X EV/EBITDA.</p>\n<p>EV/EBITDA is market cap + net debt/EBITDA and is Joel Greenblatt's and private equity's favorite valuation metric.</p>\n<p>Baidu's 13-year median EV/EBITDA is 23.2, and its trading at 13.6, implying a potential 42% discount to fair value.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>Historical Fair Value (12-years)</b></td>\n   <td><b>2020</b></td>\n   <td><b>2021</b></td>\n   <td><b>2022</b></td>\n   <td><b>2023</b></td>\n  </tr>\n  <tr>\n   <td>Earnings</td>\n   <td>25.0</td>\n   <td>$243.87</td>\n   <td>$261.27</td>\n   <td>$307.91</td>\n   <td>$357.77</td>\n  </tr>\n  <tr>\n   <td>Owner Earnings (Buffett smoothed out FCF) - 10 yr</td>\n   <td>23.5</td>\n   <td>$324.46</td>\n   <td>$394.46</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>Operating Cash Flow</td>\n   <td>19.9</td>\n   <td>$202.33</td>\n   <td>$321.22</td>\n   <td>$420.37</td>\n   <td>$448.64</td>\n  </tr>\n  <tr>\n   <td>Free Cash Flow (11-yr)</td>\n   <td>27.5</td>\n   <td>$220.77</td>\n   <td>$408.53</td>\n   <td>$497.28</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>EBITDA</td>\n   <td>22.0</td>\n   <td>$190.60</td>\n   <td>$291.18</td>\n   <td>$370.80</td>\n   <td>$459.36</td>\n  </tr>\n  <tr>\n   <td>EBIT (operating income)</td>\n   <td>34.5</td>\n   <td>$207.78</td>\n   <td>$261.14</td>\n   <td>$328.78</td>\n   <td>$392.83</td>\n  </tr>\n  <tr>\n   <td><b>Average</b></td>\n   <td><b>$224.60</b></td>\n   <td><b>$312.71</b></td>\n   <td><b>$373.81</b></td>\n   <td><b>$410.40</b></td>\n  </tr>\n  <tr>\n   <td>Current Price</td>\n   <td>$215.83</td>\n  </tr>\n  <tr>\n   <td><p><b>Discount To Fair Value</b></p></td>\n   <td><b>3.91%</b></td>\n   <td><b>30.98%</b></td>\n   <td><b>42.26%</b></td>\n   <td><b>47.41%</b></td>\n  </tr>\n  <tr>\n   <td><i><b>Upside To Fair Value</b></i></td>\n   <td><i><b>4%</b></i></td>\n   <td><i><b>45%</b></i></td>\n   <td><i><b>73%</b></i></td>\n   <td><i><b>90%</b></i></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: F.A.S.T. Graphs, FactSet Research)</i></p>\n<p>BIDU is about 31% historically undervalued right now, meaning that if it grows as expected through 2023 and returns to fair value that's 90% upside potential.</p>\n<ul>\n <li>$350 is the median 12-month price target</li>\n <li>65% upside potential over the next 12 months according to analysts</li>\n</ul>\n<p>And that guestimate is 100% justified by fundamentals.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating</b></td>\n   <td><b>Margin Of Safety For Speculative 9/12 Blue-Chip Quality Companies</b></td>\n   <td><b>2020 Price</b></td>\n   <td><b>2021 Price</b></td>\n   <td><b>2022 Price</b></td>\n  </tr>\n  <tr>\n   <td>Potentially Reasonable Buy</td>\n   <td>0%</td>\n   <td>$224.60</td>\n   <td>$312.71</td>\n   <td>$373.81</td>\n  </tr>\n  <tr>\n   <td><b>Potentially Good Buy</b></td>\n   <td><b>25%</b></td>\n   <td><b>$168.45</b></td>\n   <td><b>$234.53</b></td>\n   <td><b>$280.35</b></td>\n  </tr>\n  <tr>\n   <td>Potentially Strong Buy</td>\n   <td>35%</td>\n   <td>$145.99</td>\n   <td>$203.26</td>\n   <td>$242.97</td>\n  </tr>\n  <tr>\n   <td>Potentially Very Strong Buy</td>\n   <td>45%</td>\n   <td>$123.53</td>\n   <td>$171.99</td>\n   <td>$205.59</td>\n  </tr>\n  <tr>\n   <td>Potentially Ultra-Value Buy</td>\n   <td>55%</td>\n   <td>$101.07</td>\n   <td>$140.72</td>\n   <td>$168.21</td>\n  </tr>\n  <tr>\n   <td><b>Currently</b></td>\n   <td><b>$213.41</b></td>\n   <td><b>5%</b></td>\n   <td><b>32%</b></td>\n   <td><b>43%</b></td>\n  </tr>\n  <tr>\n   <td><p>Upside To Fair Value (Not Including Dividends)</p></td>\n   <td>5%</td>\n   <td>47%</td>\n   <td>75%</td>\n  </tr>\n </tbody>\n</table>\n<p>At a 32% margin of safety, Baidu, despite all its risks, is a potentially good buy for more risk-tolerant investors.</p>\n<p>But the ability to potentially enjoy monster short-term gains is just the cherry on top with Baidu.</p>\n<p><b>Reason 4: Eye-Popping Long-Term Return Potential</b></p>\n<p>Here is a reasonable idea of what kind of returns you can expect buying BIDU today.</p>\n<p><b>Baidu 2023 Consensus Return Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/15f5606b2eaa042608497f68998a69cc\" tg-width=\"640\" tg-height=\"385\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>If BAIDU grows as analysts expect through 2023, and returns to historical fair value, then analysts expect</p>\n<ul>\n <li>75% total returns</li>\n <li>23.3% CAGR returns</li>\n <li>vs -1.3% CAGR S&amp;P 500</li>\n</ul>\n<p>From its 31% discount, BIDU has the potential to outperform the 36% overvalued S&amp;P 500 by 78% over the next three years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7be8ed919f810734d99f50b4b14741dd\" tg-width=\"640\" tg-height=\"405\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>Corporate earnings growth estimates are rising by the day. Yet the market has already priced in three years of earnings growth totaling 62% or 17.4% CAGR.</p>\n<p>Over the long term, BIDU's return outlook is also very strong.</p>\n<p><b>Baidu 2026 Consensus Return Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d9aef71a5e564b122341a52dec05bb34\" tg-width=\"640\" tg-height=\"405\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>If BIDU grows as analysts expect through 2026 and returns to historical fair value you could expect</p>\n<ul>\n <li>179% total returns</li>\n <li>19.8% CAGR</li>\n <li>vs 4.5% CAGR S&amp;P 500</li>\n <li><i><b>4.4X better than the market's consensus return potential</b></i></li>\n</ul>\n<p>If BIDU delivers as analysts expect, then buying today could almost triple your money in the next five years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/935c135e000c240df768640b47826e5c\" tg-width=\"640\" tg-height=\"453\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>Over the long term, analysts expect</p>\n<ul>\n <li>0% yield + 17.5% growth = 17.5% CAGR very long-term total returns (after valuation changes cancel out)</li>\n <li>6% to 28% CAGR range</li>\n <li>vs 7.8% for the S&amp;P and 10.8% for the dividend aristocrats</li>\n</ul>\n<p><b>Baidu Total Returns Since 2006</b></p>\n<p><img src=\"https://static.tigerbbs.com/cfe7969e52431f689a9737c4c48401e1\" tg-width=\"640\" tg-height=\"124\"><img src=\"https://static.tigerbbs.com/08f72f9d45d8f32d950ea367c84cb531\" tg-width=\"640\" tg-height=\"297\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/40bd03cb49698c42f76664151bd05cf5\" tg-width=\"640\" tg-height=\"298\"><span>(Source: Portfolio Visualizer)</span></p>\n<p>In the last 15 years, BIDU has turned $1 into $26, adjusted for inflation, and crushed the market with 8X more wealth compounding.</p>\n<p>It's expected to grow slightly slower than in the past, but the ability to potentially enjoy 17.5% hyper-growth for many years is incredibly attractive.</p>\n<p><b>Baidu Vs S&amp;P 500 Vs Dividend Aristocrat Inflation-Adjusted Total Return Forecast: $650 Initial Investment</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Time Frame (Years)</b></td>\n   <td><b>5.8% LT Inflation-Adjusted Returns (S&amp;P Consensus)</b></td>\n   <td><b>8.8% Inflation-Adjusted Returns (aristocrat consensus)</b></td>\n   <td><b>15.5% Inflation-Adjusted Returns (BIDU consensus)</b></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>$1,325.65</td>\n   <td>$1,524.56</td>\n   <td>$1,336.05</td>\n  </tr>\n  <tr>\n   <td><b>10</b></td>\n   <td><b>$1,757.34</b></td>\n   <td><b>$2,324.28</b></td>\n   <td><b>$2,746.21</b></td>\n  </tr>\n  <tr>\n   <td>15</td>\n   <td>$2,329.62</td>\n   <td>$3,543.51</td>\n   <td>$5,644.73</td>\n  </tr>\n  <tr>\n   <td>20</td>\n   <td>$3,088.26</td>\n   <td>$5,402.29</td>\n   <td>$11,602.54</td>\n  </tr>\n  <tr>\n   <td>25</td>\n   <td>$4,093.94</td>\n   <td>$8,236.11</td>\n   <td>$23,848.60</td>\n  </tr>\n  <tr>\n   <td><b>30</b></td>\n   <td><b>$5,427.13</b></td>\n   <td><b>$12,556.45</b></td>\n   <td><b>$49,019.95</b></td>\n  </tr>\n  <tr>\n   <td>35</td>\n   <td>$7,194.46</td>\n   <td>$19,143.06</td>\n   <td>$100,758.76</td>\n  </tr>\n  <tr>\n   <td>40</td>\n   <td>$9,537.33</td>\n   <td>$29,184.74</td>\n   <td>$207,106.02</td>\n  </tr>\n  <tr>\n   <td>45</td>\n   <td>$12,643.14</td>\n   <td>$44,493.88</td>\n   <td>$425,699.02</td>\n  </tr>\n  <tr>\n   <td><b>50</b></td>\n   <td><b>$16,760.36</b></td>\n   <td><b>$67,833.58</b></td>\n   <td><b>$875,009.10</b></td>\n  </tr>\n </tbody>\n</table>\n<p>The ability to grow 2X to 3X as fast as the S&amp;P 500 or aristocrats creates the potential for wealth compounding on a massive scale. Look at how large my $650 initial BIDU investment can grow, assuming analysts are right and management delivers the expected growth over time.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Time Frame (Years)</b></td>\n   <td><b>Ratio S&amp;P vs Aristocrat Consensus</b></td>\n   <td><b>Ratio S&amp;P vs BIDU consensus</b></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>1.15</td>\n   <td>1.01</td>\n  </tr>\n  <tr>\n   <td><b>10</b></td>\n   <td><b>1.32</b></td>\n   <td><b>1.56</b></td>\n  </tr>\n  <tr>\n   <td>15</td>\n   <td>1.52</td>\n   <td>2.42</td>\n  </tr>\n  <tr>\n   <td>20</td>\n   <td>1.75</td>\n   <td>3.76</td>\n  </tr>\n  <tr>\n   <td>25</td>\n   <td>2.01</td>\n   <td>5.83</td>\n  </tr>\n  <tr>\n   <td><b>30</b></td>\n   <td><b>2.31</b></td>\n   <td><b>9.03</b></td>\n  </tr>\n  <tr>\n   <td>35</td>\n   <td>2.66</td>\n   <td>14.01</td>\n  </tr>\n  <tr>\n   <td>40</td>\n   <td>3.06</td>\n   <td>21.72</td>\n  </tr>\n  <tr>\n   <td>45</td>\n   <td>3.52</td>\n   <td>33.67</td>\n  </tr>\n  <tr>\n   <td><b>50</b></td>\n   <td><b>4.05</b></td>\n   <td><b>52.21</b></td>\n  </tr>\n </tbody>\n</table>\n<p>Over the long term, the aristocrats are expected to quadruple the S&amp;P 500's wealth compounding. Baidu could potentially deliver 52X as much wealth as the S&amp;P 500.</p>\n<p>Is Baidu likely to grow 17.5% for 50 years? Probably not. But even if it can deliver just 10 to 20 years of hyper-growth, when combined with its attractive current valuation, that's worthy of a small initial investment in my book.</p>\n<p><b>Risk Profile: Why Baidu Isn't Right For Everyone</b></p>\n<p>There are no risk-free companies and no company is right for everyone. You have to be comfortable with the fundamental risk profile.</p>\n<p><b>Fundamental Risk Summary</b></p>\n<blockquote>\n We think Baidu faces high levels of risk, given intense competition along with questions as to whether its AI-related investment will generate satisfactory returns.\n</blockquote>\n<blockquote>\n Though Baidu is the largest search engine in China, it is competing with the other two Internet giants, Tencent and Alibaba, and Google’s potential return to the Chinese search market is also a threat.\n</blockquote>\n<blockquote>\n Regarding the search engine business, Tencent invested in Sogou, and Alibaba acquired UC Web, which owns a mobile search engine, Shenma. Competition has extended to each key area of mobile Internet usage, such as navigation, O2O services, online video services, and so on. Baidu’s margins have been significantly dragged down by aggressive spending in video content and O2O marketing but recovered to 18.5% in 2017 from 14.2% in 2016 as Baidu divested margin-dilutive businesses.\n</blockquote>\n<blockquote>\n The major Internet companies in China have been investing in AI-related business, such as cloud computing, voice and image recognition, and autonomously driven cars. At the current stage,\n <b>it is difficult to predict whether Baidu will be the final winner in AI and whether the returns will reward its investment.</b>\n</blockquote>\n<blockquote>\n In addition, regulatory risk is a concern. Following the Wei Zexi incident in early 2016, Chinese authorities launched new regulations for online search and advertising, which clearly defined paid search results as advertising. These regulations took effect on Sept. 1, 2016. Given stricter standards for online advertisers, Baidu’s online marketing services revenue growth declined to 1% in 2016. If the local authorities release more policies regarding Internet business, such as online advertising and online finance, Baidu’s revenue could be negatively affected.\n</blockquote>\n<blockquote>\n Since 2017, Baidu has discontinued the disclosure of MAUs for its mobile search and mobile maps, which is possibly due to weaker numbers.\" - Morningstar\n</blockquote>\n<p>BIDU's pivot into the technology of the future is potentially like Satya Nadella taking MSFT into the pure cloud-driven strategy.</p>\n<p>Or it could be like IBM's Watson-based flaying, major promise but poor execution over time.</p>\n<blockquote>\n Baidu has the urgency to strengthen its mobile business because it has not developed another industry-leading business other than its mobile search app for years.\n</blockquote>\n<blockquote>\n Baidu’s share of mobile time spend reduced to 6.9% in March 2019 from 7.3% year over year. Baidu positions its flagship Baidu app (173 million daily average users in March 2019) as a \"super\" app that can serve a wide range of users' needs, such as reading, watching videos, shopping, transportation tickets, food services, and so on, but we believe the app is less of a super app compared with Tencent’s Wechat (1.1 billion monthly average users).\n</blockquote>\n<blockquote>\n It has copied the strategies of its peers by launching a mini-program (181 million MAU in March 2019) and short video apps (sevenfold year over year increase to 98 million MAU in March 2019 as per Questmobile).\" - Morningstar\n</blockquote>\n<p>Baidu has struggled more than most Chinese tech giants to pivot and adapt to the disruption risk that is ever-present in this industry.</p>\n<blockquote>\n We have not factored in the meaningful commercialization of Baidu’s AI-based services, such as voice assistant platform DuerOS, autonomous driving platform Apollo and artificial intelligence cloud services.\n</blockquote>\n<blockquote>\n <b>Search is driven by an artificial intelligence-powered algorithm, giving Baidu a good foundation in this segment.</b>Baidu is also\n <b>one of the largest and earliest companies to start AI investments in China.</b>Currently, Baidu uses AI to recommend feeds to the app’s users to generate advertising revenue.\n</blockquote>\n<blockquote>\n IQiyi, Baidu’s online video platform, has been a key growth driver stemming from increasing willingness to pay for premium content in China and continuous advertising demand on&nbsp;\n <b>iQiyi. It accounted for 29% of Baidu’s revenue in the first quarter of 2019.</b>\n</blockquote>\n<blockquote>\n In the near term, Baidu will invest heavily in its mobile business in terms of sales and marketing, and traffic acquisition. While meaningful monetization is uncertain, we expect Baidu to increase or maintain its research and development expenditure, which is at 17% of sales in the first quarter of 2019. To fend off major competitor Tencent Video, iQiyi needs to continue to invest in premium content. Therefore, we expect Baidu’s margins to be under pressure in the near term.\" - Morningstar\n</blockquote>\n<p>But while Baidu has made some questionable investments over the years, its current focus on AI is a logical and prudent one.</p>\n<p>Baidu's competitive advantage in AI stems from being the first mover in Chinese search. It has the most data to feed into its machine learning algorithms, though rivals like Alibaba (BABA) and Tencent (OTCPK:TCEHY) are working hard to eat its lunch.</p>\n<blockquote>\n Baidu generated 68% of its revenue during the year from its online marketing services segment, which mainly sells ads. The segment's revenue has declined year over year for&nbsp;seven straight quarters.\n</blockquote>\n<blockquote>\n That ongoing slowdown is troubling since Baidu's advertising rivals -- like&nbsp;\n <b>Tencent</b>&nbsp;and&nbsp;\n <b>Bilibili --</b>both expanded&nbsp;their advertising businesses over the past year. It also indicates people are spending less time on traditional online searches and more time on other digital platforms.\" - Leo Sun,Motley Fool\n</blockquote>\n<p>In recent years, BIDU's market share in digital ads has been declining, which means unlike companies like JD, BABA, and TCEHY, it's attempting to pivot from a position of weakness, not strength.</p>\n<p>It has the resources to invest heavily and hopefully achieve the kinds of impressive growth rates analysts expect. But success is far from guaranteed.</p>\n<p>This is why I've bought a starter 3 share tracking position in Baidu.</p>\n<ul>\n <li>compared to a $10,000 position in Alphabet (GOOG)</li>\n <li>and an&nbsp;$89,000 investment into Alibaba</li>\n <li>and a&nbsp;$200,000 investment into Amazon(AMZN)</li>\n</ul>\n<p>And of course, we can't forget about the risks surrounding management and governance.</p>\n<blockquote>\n Robin Yanhong Li, the founder of Baidu, has been the chairman of the board since its inception and has served as the CEO since 2004. Before that, Li worked at IDD Information Services and Infoseek in Silicon Valley, with a special focus on product development in Internet search engines. Li owned 16.4% of the company as of January 2020, and all directors and management together owned 16.5%. Jennifer Xinzhe Li stepped down as CFO in 2017 and was replaced by Herman Yu, formerly of Weibo...\n</blockquote>\n<blockquote>\n Baidu had reputational issues, with the Wei Zexi medical incident being the largest scandal, which led to a management restructuring in 2016. Three vice presidents were dismissed. Qi Lu joined Baidu in January 2017 as group president and COO but resigned in June 2018. Lu has a solid record in the U.S. technology industry, and Baidu’s financial performance substantially improved during his appointment.\n</blockquote>\n<blockquote>\n This incident once again raised the market’s concern about Baidu’s turnover of key executives, including ex-chief scientist Andrew Ng and ex-senior vice president Jin Wang. In May 2019, Baidu announced the departure of senior vice president Hailong Xiang, who had been with Baidu since 2005. His departure is believed to be a result of Baidu’s inability to develop another successful and profitable business outside of search.\n</blockquote>\n<blockquote>\n The introduction of a senior management retirement plan and a young leadership development program signifies Baidu’s determination to revamp its management and reinvigorate its businesses in the new Internet era. Shen Dou leads the mobile ecosystem group now. He has a technical background and puts more focus on more user experience versus maximizing sales. There are now more interactions between the sales, commercial product team, and the user experience team, which we think is better for Baidu’s sustainability.\" - Morningstar\n</blockquote>\n<p>Unlike the management at Tencent, which Morningstar considers \"exemplary\" or the \"deep bench\" at Alibaba, BIDU has struggled with management in recent years.</p>\n<blockquote>\n B shares, which are owned by the CEO and his affiliates, have 10 times the voting rights of Class A shares. Therefore,\n <b>Li controls 55.4% of the equity voting rights</b>&nbsp;as of January 2020.As a result, these Class B shareholders have a disproportionately large influence over key matters such as the election of directors and significant corporate transactions, including mergers and the sale of the company or assets.\" - Morningstar\n</blockquote>\n<p>BIDU's founder and CEO controls 55% of the vote and thus is effectively king of Baidu. If shareholders don't like what management does, they have no recourse other than selling.</p>\n<p>Management isn't a poor capital allocator, but in recent years it hasn't been firing on all cylinders when it comes to pivoting to growth catalysts as easily as JD, BABA, and TCEHY have.</p>\n<blockquote>\n Some of Baidu’s acquisitions and new business developments have proved unsuccessful.\n</blockquote>\n<blockquote>\n These include the acquisition of 59% of Nuomi, a group-buying service provider, for $160 million in 2013 and the remaining stake in 2014 for an undisclosed sum, and Raven Tech for $90 million in 2017...\n</blockquote>\n<blockquote>\n Baidu’s investments in online-to-offline businesses such as deliveries and Nuomi led to its&nbsp;\n <b>operating margin declining from 26.1% in 2014 to 14.2% in 2016</b>&nbsp;but they did not gain as much scale as Meituan.\n</blockquote>\n<blockquote>\n However, we refrain from giving a Poor stewardship rating to Baidu for several reasons.\n</blockquote>\n<blockquote>\n <b>Baidu made the right decision in moving away from the O2O businesses, which led to margin improvement to 18.5% in 2017</b>and investing in mobile and AI, which we believe is sensible given that they complement its strong core search business.\n</blockquote>\n<blockquote>\n Also, Baidu’s return on invested capital has been way higher than its weighted average cost of capital of 9.8% over the past 10 years.\" - Morningstar\n</blockquote>\n<p>And of course, every investor in Chinese tech has to understand VIE regulatory risk.</p>\n<blockquote>\n Like many other Chinese Internet companies listed in overseas markets, Baidu operates under a&nbsp;\n <b>variable interest entity structure</b>&nbsp;designed to let companies bypass Chinese legal restrictions on foreign ownership in certain sectors.\n</blockquote>\n<blockquote>\n Baidu's foreign investors essentially hold shares of Baidu's VIE domiciled in the Cayman Islands.\n <b>We don't expect any legal challenges to VIE structures by the Chinese government</b>&nbsp;and believe that Baidu will consider a China depositary receipt listing in the future.\n</blockquote>\n<blockquote>\n However, if the legitimacy of Baidu's related VIE is found to violate applicable law or regulation, Chinese regulatory authorities might take action, including revoking the business and operating licenses of Baidu's subsidiaries or the VIE, or discontinuing, restricting, or restructuring Baidu's operations.\n</blockquote>\n<blockquote>\n Since the Chinese Ministry of Commerce has the jurisdiction to regulate VIEs,\n <b>we believe overseas investors would have limited legal rights</b>.\" - Morningstar\n</blockquote>\n<p>VIE regulatory risk is the reason that all Chinese tech stocks are speculative, and always will be, regardless of quality (Tencent is a 12/12 speculative Ultra SWAN for this reason).</p>\n<p>How do you measure and factor in such a complex risk profile?</p>\n<p>By turning to the expert consensus.</p>\n<ul>\n <li>39 analysts that cover BIDU and collectively know it better than anyone other than management</li>\n <li>and whether or not scary headlines meaningfully alter the investment thesis</li>\n <li>2 credit rating agencies</li>\n <li>3 ESG risk rating agencies</li>\n <li>44 total experts that monitor BIDU's risk profile for DK and will let us know if the thesis is weakening, strengthening or breaks</li>\n</ul>\n<p><b>ESG Material Financial Risk Analysis</b></p>\n<p><b>Essential To Fully Understanding A Company's Overall Risk Profile Especially Chinese Tech Companies</b></p>\n<p>According to the world's best risk assessors, ESG metrics are a critical component of a company's overall risk profile. Here's who considers ESG important and builds it into their safety models and ratings.</p>\n<ul>\n <li><p>BlackRock - #1 asset manager in the world</p></li>\n <li><p>MSCI - #1 indexing giant</p></li>\n <li><p>Morningstar</p></li>\n <li><p>Reuters'/Refinitiv</p></li>\n <li><p>ISS (Institutional Shareholder Services) - #1 corporate proxy firm on earth</p></li>\n <li><p>S&amp;P</p></li>\n <li><p>Fitch</p></li>\n <li><p>Moody's</p></li>\n <li><p>DBRS (Canadian credit rating agency)</p></li>\n <li><p>AM Best (insurance industry rating agency)</p></li>\n <li><p>Bank of America - one of the 16 most accurate economic/analyst teams in the world according to Market Watch</p></li>\n <li><p>Bloomberg</p></li>\n <li><p>FactSet Research</p></li>\n <li>State Street - one of the largest custodial banks on earth</li>\n <li>Wells Fargo - one of the 16 most accurate economic/analyst teams in the world according to Market Watch</li>\n <li>NAREIT</li>\n</ul>\n<blockquote>\n Companies with strong ESG profiles may be better positioned for future challenges and experience\n <b>fewer instances of bribery, corruption, and fraud.</b>\" - MSCI (Emphasis added)\n</blockquote>\n<p>Bank of America's research finds that ESG metrics also help improve the long-term profitability and outcomes at companies.</p>\n<blockquote>\n <b>Punchline: higher ROE, lower risk &amp; lower cost of capital</b>\n</blockquote>\n<blockquote>\n We find that companies with greater gender diversity at the board/management level typically see&nbsp;\n <b>higher ROE and lower earnings risk than peers.</b>\n</blockquote>\n<blockquote>\n Moreover, based on disclosure data from ICE, we find gender diversity in management is associated with a&nbsp;\n <b>~20% premium on P/E</b>&nbsp;on an overall and sector-neutral basis.\n</blockquote>\n<blockquote>\n Ethnic and racial workforce diversity shows similarly strong results:\n <b>higher ROE, lower risk, and significant premia on P/E and P/BV.</b>\" - Bank of America (emphasis original)\n</blockquote>\n<p>ESG isn't about political correctness, it's about sound business practices and maximizing long-term profits by avoiding blowing up companies in the short to medium-term.</p>\n<p><b>Baidu Consensus ESG Risk Rating</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating Agency</b></td>\n   <td><b>Industry Percentile</b></td>\n   <td><p><b>Rating Agency Classification</b></p></td>\n  </tr>\n  <tr>\n   <td>MSCI</td>\n   <td>54.0%</td>\n   <td><p>BB Below-Average</p></td>\n  </tr>\n  <tr>\n   <td>Morningstar/Sustainalytics</td>\n   <td>40.2%</td>\n   <td><p>24.4/100 Medium Risk</p></td>\n  </tr>\n  <tr>\n   <td>Reuters'/Refinitiv (Combined ESG Rating)</td>\n   <td>52.6%</td>\n   <td>Satisfactory</td>\n  </tr>\n  <tr>\n   <td>S&amp;P</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td><b>Consensus</b></td>\n   <td><b>48.9%</b></td>\n   <td><b>Average</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Sources: MSCI, Morningstar, Reuters'/Refinitiv)</i></p>\n<p>According to Morningstar, MSCI, and Reuter's BIDU's overall handling of its long-term financial ESG risk is average, in the 49th percentile.</p>\n<ul>\n <li>which is actually the highest ESG score of any of the big China tech stocks</li>\n <li>ESG investors probably want to avoid Chinese companies</li>\n</ul>\n<p><img src=\"https://static.tigerbbs.com/afa54b995a935d581ed79c58fb5d4920\" tg-width=\"640\" tg-height=\"491\"><img src=\"https://static.tigerbbs.com/464e286a82c2e31d4b5bc2a67525beb8\" tg-width=\"640\" tg-height=\"229\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0b0b24c0262471afee43fa88dfe8da44\" tg-width=\"640\" tg-height=\"319\"><span>(Source: MSCI)</span></p>\n<p>Chinese companies tend to score poorly on ESG due to governance issues.</p>\n<p>But note that BIDU used to be rated CCC very poor and has seen two rating upgrades in two years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/81242ba4340325a61c591a15f1e0aed7\" tg-width=\"640\" tg-height=\"453\"><span>(Source: BIDU IR)</span></p>\n<p>In recent years BIDU did establish an ESG committee that may explain the improvement in ESG risk scores.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/01d6eec0412fa9351dcb8716bbbbc1a4\" tg-width=\"640\" tg-height=\"540\"><span>(Source: BIDU IR)</span></p>\n<blockquote>\n To enhance the integrity of mobile information and continue to be a leader in AI, we devote time and attention to the needs and demands of stakeholders, including suppliers, partners, governments, social institutions, users, employees, communities, and the environment itself.\n</blockquote>\n<blockquote>\n We actively explore low carbon operations, sustainable economic indicators, supply chain management, intellectual property, technological innovation, compliance, data privacy, information security, user experience, personnel training, employee rights, and community engagement.\n</blockquote>\n<blockquote>\n We aim to fully integrate an ESG philosophy and standards into our management, solve social problems with technology, leverage our corporate strength and innovation capability, and contribute long-term, sustainable value to stakeholders and the human community at large.\" - BIDU ESG mission statement\n</blockquote>\n<p>BIDU is talking the talk, and apparently beginning to walk the walk as well when it comes to managing long-term risk.</p>\n<p><img src=\"https://static.tigerbbs.com/5588fc730d2ccc5631369a46ea7bdd1b\" tg-width=\"640\" tg-height=\"456\"><img src=\"https://static.tigerbbs.com/2b3f779db4dbecb7bcc0e0880b6f4ae3\" tg-width=\"640\" tg-height=\"293\"></p>\n<p>Morningstar rates BIDU below average compared to its peers, but on par with the likes of Spotify, Snap, and MercadoLibre. In fact, Morningstar considers BIDU's ESG risk to be in the top 36% of all companies it rates.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ea303ae18b648b1beee3ba4bb69b599c\" tg-width=\"640\" tg-height=\"308\"><span>(Source: Reuters'/Refinitiv)</span></p>\n<p>Reuters/Refinitv is the most robust ESG model we have access to. Over 450 metrics in total make up that score.</p>\n<ul>\n <li>BIDU scores rather poorly on governance and environmental issues</li>\n</ul>\n<p>The bottom line is that all companies have complex risk profiles that need to be considered before investing.</p>\n<p>The DK Safety and quality model don't ignore any risk, and BIDU's risks are firmly baked into its speculative blue-chip rating.</p>\n<p>A 32% margin of safety compensates us appropriately for all of the company's risks, and what could go wrong in the future.</p>\n<p>However, more risk-intolerant investors will want to avoid BIDU and Chinese companies in general.</p>\n<p><b>Bottom Line: It's Time To Be Greedy When Others Are Fearful About Baidu</b></p>\n<p>In this highly overvalued market, it's easy to throw up your hands and shout \"everything is expensive and it's dangerous to buy any stock.\"</p>\n<p>While there are many speculative bubbles that could destroy your retirement dreams, there are ALWAYS great blue-chip bargains available.</p>\n<p>Baidu is one of those potentially exceptional long-term opportunities right now. Its 40% bear market, partially created by forced institutional margin call selling, allows anyone comfortable with its risk profile to buy the Google of China at a 32% margin of safety.</p>\n<p>Is Baidu speculative? Sure, all Chinese tech stocks are. Is it worth risking a small amount of discretionary savings to see whether Baidu can deliver on its AI/Driverless car/Streaming plans?</p>\n<p>I think so. If Baidu lives up to expectations, then it could potentially double within three years and almost triple within five.</p>\n<p>Barring the most extreme stock market bubble in history, one that surpasses the tech mania of the late '90s, there is no chance the S&amp;P 500 and Nasdaq will even come close.</p>\n<p>And to achieve such returns Baidu doesn't have to fly off into a speculative bubble. It merely has to return to fair value and grow at the impressive rates analysts expect and it has delivered in the past.</p>\n<p>I can't tell you what Baidu's price will do over the next year. I can tell you that the 65% upside analysts expect over the next 12 months is 100% fundamentally justified.</p>\n<p>For those comfortable with the complex risk profile inherent to Chinese tech stocks, a small position in Baidu at some of the best valuations in years is a reasonable and prudent decision.</p>\n<p>Basically, it's time to be greedy when others are fearful about the Google of China.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Reasons Baidu Could Make You Rich</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Reasons Baidu Could Make You Rich\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-03 12:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"09888":"百度集团-SW","BIDU":"百度"},"source_url":"https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1121605010","content_text":"Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.\nFortunately, whatever your goals, yield, value, growth, or total returns, something great is always on sale if you know where to look.\nBaidu is the Google of China, and planning on increasing spending by 30% annually over the coming years, focusing on AI, driverless cars, and streaming.\nIn recent weeks it plunged 40%, partially due to forced hedge fund margin call selling. This creates a potentially exceptional opportunity to be \"greedy when others are fearful\" about this speculative hyper-growth blue-chip.\nI recently bought a starter position in Baidu, because it's 31% undervalued and analysts think it could double in the next three years, and almost triple over the next five. For anyone comfortable with the complex risk profile of Chinese tech giants, Baidu is one of the most reasonable and prudent hyper-growth blue-chips you can buy today.\n\nPhoto by DNY59/iStock via Getty Images\nOver seven years as an analyst I've studied the greatest investors in history, to see what strategies made them legends.\nGreatest Investors In History: Masters Of Financial Science\n\n\n\n\nName\nReturns\nTime Horizon\nMost Famous For\n\n\nJim Simmons (Co-Founder Renaissance Technologies)\n71.8% CAGR\n1994 to 2014 (best investing record ever recorded)\nPure Quant Based Investing\n\n\nJoel Greenblatt\n40% CAGR\n21 years at Gotham Capital\n\"Above-Average Quality Companies At Below-Average Prices\"\n\n\nPeter Lynch\n29.2% CAGR at Fidelity's Magellan Fund\n1977 to 1990 (13 years)\n\"Growth At A Reasonable Price\"\n\n\nBill Miller (Legg Mason Value Trust 1990 to 2006)\n22.8% CAGR and beat the S&P 500 for 15 consecutive years\n16 years\n\n\nWarren Buffett\n20.8% CAGR at Berkshire\n55 Years\nGreedy when others are fearful\n\n\nBenjamin Graham\n20% CAGR vs 12% S&P 500\n1934 to 1956 (22 years)\nMargin of Safety\n\n\nEdward Thorp\n20+% CAGR\nover 30 years\ninvented card counting,pure statistically-based investing\n\n\nCharlie Munger\n19.80%\n1962 to 1975\nWonderful companies at fair prices\n\n\nHoward Marks\n19% CAGR\nSince 1995\nValuation Mean Reversion\n\n\nAnne Scheiber\n18.3% CAGR\n50 years\nTurned $5K into $22 million with no formal training, purely withtax-efficient buy and hold blue-chip investing.\n\n\nJohn Templeton\n300% from 1939 to 1943, 15.8% CAGR from 1954 to 1992\n38 years\nMarket Cycles\n\n\nCarl Icahn\n14.6% CAGR vs 5.6% S&P 500\n2001 to 2016 (15 Years)\n\n\nDavid Swenson\n13.9% CAGR at Yale's Endowment (includes bonds and alternative assets) vs 10.7% S&P 500\n30 years\nAlternative Asset Allocation\n\n\nGeraldine Weiss\n11.2% vs 9.8% S&P 500\n37 years\nBest risk-adjusted track recordof any newsletter over 30 years according to Hubbert Financial Digest, popularizeddividend yield theory(the only strategy she employed)\n\n\n\nCombining these lessons, along with decades of market studies from leading research institutions and blue-chip analyst firms, I've determined that there are six fundamentals that over the long term will make you rich (assuming you have discretionary savings to invest of course).\n\nPortfolio risk-management\nsafety\nquality\nyield\ngrowth\nand value\n\nWhen combined with patience, time, and discipline, these are what made the greatest investors in history the legends they are today.\nYou and I may never match the returns of the legends, but if we practice disciplined financial science we can avoid costly mistakes, and focus on the highest probability/low-risk blue-chips.\n\n It's remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.\" - Charlie Munger\n\nThese are the \"consistently not stupid\" decisions that made Charlie Munger and Warren Buffett so successful.\nToday I want to explain why I've recently opened a starter tracking position in speculative hyper-growth blue-chip Baidu (BIDU).\n\nAll Chinese tech giants are suffering a bear market right now. But notice how Baidu recently fell 40% in a matter of weeks.\n\n Baidu was also held by now-infamous hedge fund Archegos Capital Management at that time, which blew up during the same week. When the highly levered Archegos was unable to meet a margin call, banks seized Archegos' assets, including Baidu, and sold them off in massive blocks, accelerating Baidu's plunge.\" -Motley Fool\n\nInstitutional forced selling is one of the best opportunities for prudent long-term investors to buy the world's highest quality companies at mouth-watering prices.\n\nLowe's (LOW) and Realty Income (O) both plunged 25% on March 16th, due to institutional forced selling.\nIn other words, when hedge funds get margin calls, they become the ultimate dumb money. Taking the other side of those trades can be the way to earn Buffett-like returns, through buying and holding blue-chip investing.\nSo let me explain the four reasons why I consider it time to get greedy when others are fearful on Baidu.\n\n Today I buy what others won't, so tomorrow I earn returns others can't.\"\n\n\n  - Paraphrase of Jerry Rice\n\nReason 1: A Speculative Blue-Chip Quality Company\nAccording to the 2017 studyDo Stocks Outperform Treasury Bills?by Hendrik Bessembinder of Arizona State University's W.P. Carey School of Business 52% of all stocks, lose money over time.\nThis study looked at 26,000 companies from 1926 to 2016 and found that about 12% went to zero.\n\n(Source: Bessembinder et al)\nFrom 1926 to 2016 over 3,000 US companies listed on US exchanges went bankrupt. 1,100 or about 4%, delivered 100% of net positive returns. Just 48% of stocks delivered positive returns.\nIn other words, safety and quality are what can help you avoid the value traps that don't make any money or lose all of your savings.\nThe Dividend Kings quality scores factor in 143 fundamental metrics covering\n\ndividend safety\nbalance sheet strength\nshort and long-term bankruptcy risk\naccounting and corporate fraud risk\nprofitability and business model\ncost of capital\nlong-term sustainability (ESG scores and trends from MSCI, Morningstar, and Reuters'/Refinitiv)\nmanagement quality\ndividend friendly corporate culture/income dependability\nlong-term total returns (a Ben Graham sign of quality)\n\nOur model actually includes over 1,000 metrics if you count everything factored in by eight rating agencies we use to assess fundamental risk.\nEvery metric was selected based on\n\ndecades of empirical data\nthe experience of the greatest investors in history\neight rating agencies\nand what blue-chip economists and analyst firms consider most closely correlated to a company's long-term success.\n\nBaidu's quality is 9/12 speculative blue-chip, meaning I recommend a 2.5% max risk cap position sizing.\nDividend Kings Quality Rating System\n\n\n\n\nQuality Score\nMeaning\nMax Invested Capital Risk Recommendation\nMargin Of Safety Potentially Good Buy\nStrong Buy\nVery Strong Buy\nUltra-Value Buy\n\n\n3\nTerrible, Very High Long-Term Bankruptcy Risk\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n4\nVery Poor\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n5\nPoor\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n6\nBelow-Average, Fallen Angels (very speculative)\n1%\n45%\n55%\n65%\n75%\n\n\n7\nAverage (Relative to S&P 500)\n2.5%\n35%\n45%\n55%\n65%\n\n\n8\nAbove-Average\n5% (unless speculative then 2.5%)\n25% to 30%\n35% to 40%\n45% to 50%\n55% to 60%\n\n\n9\nBlue-Chip\n7% (unlessspeculativethen2.5%)\n20% to25%\n30% to35%\n40% to45%\n50% to55%\n\n\n10\nSWAN (a higher caliber of Blue-Chip)\n7% (unless speculative then 2.5%)\n15% to 20%\n25% to 30%\n35% to 40%\n45% to 50%\n\n\n11\nSuper SWAN (exceptionally dependable blue-chips)\n7% (unless speculative then 2.5%)\n10% to 15%\n20% to 25%\n30% to 35%\n40% to 45%\n\n\n12\nUltra SWAN (as close to perfect companies as exist)\n7% (unless speculative then 2.5%)\n5% to 10%\n15% to 20%\n25% to 30%\n35% to 40%\n\n\n\nWhat exactly makes Baidu a speculative blue-chip?\nBalance Sheet Safety\n\n\n\n\nRating\nDividend Kings Safety Score (75 Safety Metric Model)\nApproximate Dividend Cut Risk (Average Recession)\nApproximate Dividend Cut Risk In Pandemic Level Recession\n\n\n1 (very unsafe)\n0% to 20%\nover 4%\n16+%\n\n\n2 (unsafe average)\n21% to 40%\nover 2%\n8% to 16%\n\n\n3 (average)\n41% to 60%\n2%\n4% to 8%\n\n\n4 (safe)\n61% to 80%\n1%\n2% to 4%\n\n\n5 (very safe)\n81% to 100%\n0.5%\n1% to 2%\n\n\nBIDU\n76%\nA stable rating from Fitch, A3 (A- equivalent) stable rating Moody's\n0.66% to 2.5% 30-year default/bankruptcy risk\n\n\n\nLong-Term Dependability\n\n\n\n\nCompany\nDK Long-Term Dependability Score\nInterpretation\nPoints\n\n\nS&P 500/Industry Average\n58%\nAverage Dependability\n2\n\n\nNon-Dependable Companies\n31% or below\nPoor Dependability\n1\n\n\nRelatively Dependable Companies\n32% to 70%\nBelow to Above-Average Dependability\n2\n\n\nVery Dependable Companies\n71% to 80%\nVery Dependable\n3\n\n\nExceptionally Dependable Companies\n81% or higher\nExceptional Dependability\n4\n\n\nBIDU\n67%\nAbove-Average Dependability\n2\n\n\n\nOverall Quality\n\n\n\n\nBIDU\nFinal Score\nRating\n\n\nSafety\n76%\n4/5\n\n\nBusiness Model\n80%\n3/3\n\n\nDependability\n67%\n2/4\n\n\nTotal\n73%\n9/12 Speculative Blue-Chip\n\n\n\nBaidu is the 245th Highest Quality Master List Company (Out of 495) = 49th Percentile\n(Source: DK Safety & Quality Tool) updated at the end of each day, sorted by overall quality score\n\ngreen = potentially good buy or better\nblue = potentially reasonable buy\nyellow = hold\nred = potential trim/sell\n\nBIDU's 73% quality score means it's the 245th highest quality company on the DK 500 Master List. This list includes the world's highest quality companies including\n\nall dividend champions\nall dividend aristocrats\nall dividend kings\nall 12/12 Ultra SWANs (as close to perfect quality as exists on Wall Street, think wide moat aristocrats)\nnumerous global aristocrats (such as BTI, ENB, and NVS)\n\nBIDU is about average quality compared to the world's elite companies and similar in quality to such 9/12 blue-chips and, 10/12 SWANs, as\n\nQualcomm (QCOM)\nBecton, Dickinson and Company (BDX) - dividend aristocrat\nW. P. Carey (WPC)\nSonoco Products (SON) - dividend champion\nH.B. Fuller (FUL) - dividend king\nMetLife (MET)\nDigital Realty Trust (DLR)\nLeggett & Platt (LEG) - dividend aristocrat\nV.F. Corp (VFC) - dividend aristocrat\nBank of New York Mellon (BK)\n\nBaidu has a strong cash-rich balance sheet, though it is taking on extra leverage in order to fund its ambitious growth efforts.\n(Source: Gurufocus Premium)\nIncluding leasing expenses, BIDU has 2X as much cash as debt.\nFitch and Moody's rate Baidu A stable and A3 (A- equivalent) stable outlooks, indicating 0.66% to 2.5% 30-year default/bankruptcy risk.\nAnalysts expect much higher spending in the short-term to cause leverage to increase, though rating agencies don't expect this to be permanent.\nThe key safety ratios with Baidu are the F, Z, and M scores, advanced accounting ratios created by leading research institutions that use asset ratios scanned from quarterly filings.\n\nF-score measures short-term bankruptcy risk\nZ-score measures 2-year bankruptcy risk (with 84% to 92% historical accuracy)\nM-score measures accounting fraud risk (with 76% historical accuracy)\n\n7/9 is very safe on the F-score = very low short-term bankruptcy risk.\n3.59 vs 3+ very safe and 9.51 historical, confirms the A-credit ratings and low long-term risk of losing all your money.\nAnd the M-score of -2.42 indicates a significantly less than 17.5% probability that Baidu is cooking its books.\n\n(Source: Gurufocus)\nBIDU's historically unsafe M-score has been improving and became safe at the end of 2014 and has remained so for the last seven years.\n\nits safety and quality score still get dinged though because we factor in every important metric so we don't miss any warning signs\n\nThe M-score is 76% historically accurate at catching accounting fraud and 82.5% accurate at finding companies with honest accounting.\nCombined with its credit ratings and risk ratings from 5 different rating agencies, plus its auditors, I can say with relatively high confidence that Baidu is not the next Luckin Coffee.\nQuality is a proven alpha factor, one of seven that beats the market over the long term.\n\nOn Wall Street, profitability over time is the most accurate proxy for quality.\n\ncredit ratings are one of the best qualitative quality proxies\n\n(Source: Gurufocus Premium)\nBaidu's profitability is historically in the top 20% of its peers, confirming a wide and stable moat.\n\n\n\n\nMetric\nIndustry Percentile\nMajor Interactive Media Companies More Profitable Than BIDU (Out of 543)\n\n\nOperating Margin\n67.35\n177\n\n\nNet Margin\n81.26\n102\n\n\nReturn On Equity\n67.86\n175\n\n\nReturn On Assets\n68.47\n171\n\n\nReturn On Capital\n69.61\n165\n\n\nAverage\n70.91\n158\n\n\n\n(Source: Gurufocus Premium)\nOver the last year, increased growth spending has reduced profitability to the top 29% of peers, though that's expected to recover in the future.\n\nfor example, returns on equity are expected to rise 10% by 2024\n\nJoel Greenblatt defined quality by return on capital, his gold standard proxy for quality and moatiness.\n\noperating income (EBIT)/operating capital (the money it takes to run the business for a year)\n\nGreenblatt's entire legendary track record, 40% annual returns for 21 years, was done by combining high ROC with low valuations.\n(Source: Gurufocus Premium)\nEven with heavy growth spending in recent years, Baidu's returns on capital are very impressive.\nThe average Master List company has 88% ROC.\nThe average aristocrat 83%.\nThe average Ultra SWAN 87%.\nOver the past year, BIDU's ROC has been 103% and in Q4 it was 95%.\nAnalysts expect that in the next few years, ROC will revert back to its historical 205%.\nA level of profitability that, according to Joel Greenblatt, would make BIDU one of the highest quality companies in the world.\nBaidu's future growth is expected to come from aggressive investments into driverless cars (long-term) and AI and streaming in the short and medium term.\nBaidu Growth Spending Consensus Forecast\n\n\n\n\nYear\nSG&A\nR&D\nCapex\nTotal Growth Spending\nSales\nGrowth Spending/Sales\n\n\n2020\n$2,792\n$3,016\n$993\n$4,009\n$16,548\n24.23%\n\n\n2021\n$3,574\n$3,554\n$1,893\n$5,447\n$19,517\n27.91%\n\n\n2022\n$3,974\n$4,062\n$2,220\n$6,282\n$22,235\n28.25%\n\n\n2023\n$5,049\n$5,858\n$2,719\n$8,577\n$25,258\n33.96%\n\n\n2024\nNA\nNA\n$1,504\nNA\n$30,071\nNA\n\n\n2025\nNA\nNA\nNA\nNA\nNA\nNA\n\n\n2026\nNA\nNA\nNA\nNA\nNA\nNA\n\n\nAnnualized Growth\n21.83%\n24.77%\n10.94%\n28.85%\n16.10%\nNA\n\n\n\n(Source: FactSet Research Terminal)\nHistorically Baidu spends about 17% of its revenue on growth. By 2023 that's expected to double.\nTotal growth spending is expected to grow at almost 30% annually for the next three years.\nBaidu Consensus Profit Forecast\n\n\n\n\nYear\nSales\nFCF\nEBITDA\nEBIT (Operating Income)\nNet Income\n\n\n2020\n$16,548\n$2,106\n$4,251\n$2,216\n$3,473\n\n\n2021\n$19,517\n$3,947\n$4,734\n$2,629\n$2,760\n\n\n2022\n$22,235\n$5,013\n$5,812\n$3,400\n$3,381\n\n\n2023\n$25,258\n$5,854\n$6,730\n$4,163\n$4,226\n\n\n2024\n$30,071\n$7,421\nNA\n$6,195\n$5,268\n\n\nAnnualized Growth\n16.10%\n37.01%\n16.55%\n29.31%\n10.98%\n\n\n\n(Source: FactSet Research Terminal)\nManagement's guidance, which is the basis for these consensus forecasts, is for strong revenue growth. Net margins are expected to compress but cash flows are expected to soar.\nFree cash flow, the ultimate source of all intrinsic value according to Ben Graham and Warren Buffett, is expected to more than triple by 2024.\nBaidu Consensus Margin Forecast\n\n\n\n\nYear\nFCF Margin\nEBITDA Margin\nEBIT (Operating) Margin\nNet Margin\n\n\n2020\n12.7%\n25.7%\n13.4%\n21.0%\n\n\n2021\n20.2%\n24.3%\n13.5%\n14.1%\n\n\n2022\n22.5%\n26.1%\n15.3%\n15.2%\n\n\n2023\n23.2%\n26.6%\n16.5%\n16.7%\n\n\n2024\n24.7%\nNA\n20.6%\n17.5%\n\n\nAnnualized Growth\n18.01%\n1.23%\n11.37%\n-4.42%\n\n\n\n(Source: FactSet Research Terminal)\nBaidu's profitability is ultimately expected to improve, though net margins won't until its major growth initiatives are over.\n(Source: FactSet Research Terminal)\nBIDU ended 2020 with $5.6 billion in cash, and that's expected to rise to $22 billion by 2023, and potentially nearly $60 billion by 2024.\nThat may not be as impressive as some tech companies ($601 billion by 2026 for Amazon), but it does mean that Baidu's war chest and financial flexibility to pivot towards AI, driverless cars, and streaming will grow significantly in future years.\nBaidu Medium-Term Growth Consensus\n\n\n\n\nMetric\n2020 Actual Growth\n2021 consensus growth\n2022 consensus growth\n2023 consensus growth\n\n\nEPS\n31%\n7%\n18%\n16%\n\n\nOwner Earnings (Buffett smoothed out FCF)\n124%\n22%\nNA\nNA\n\n\nOperating Cash Flow\n-14%\n59%\n31%\n7%\n\n\nFree cash flow\n96%\n85%\n22%\nNA\n\n\nEBITDA\n-18%\n53%\n27%\n24%\n\n\nEBIT (operating income)\n130%\n26%\n26%\n19%\n\n\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nIn the next few years, Baidu's growth efforts are expected to result in strong growth. But what's attracted me to the Google of China, is that this hyper-growth is expected to continue for many years to come.\nReason 2: Long-Term Hyper-Growth Potential\n(Source: FactSet Research Terminal)\nBIDU's AI, streaming, and driverless car investments are showing up in \"other services\" and that revenue is expected to grow almost 50% in 3 years.\n\n(Source: F.A.S.T. Graphs, FactSet Research)\n\n16.0% to 17.5% long-term growth consensus range\n6% to 28% growth consensus range adjusted for historical margin of error\n\n\nThe margins of error on BIDU forecasts are very wide. 33% of the time it grows much faster than expected, 33% of the time much slower, and 33% of the about as fast as expected.\n\nmargins of error over the last decade (excluding outliers) are 60% to the downside, 55% to the upside\nthe long-term growth consensus range: 16% to 18% CAGR\nthe margin of error adjusted long-term analyst growth consensus range: 6% to 28% CAGR\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU's historical growth is from -9% to 52%. So relatively high growth uncertainty, more so than most tech blue-chips.\n\nand thus the $650 investment vs $10K in GOOG, $89K in BABA, and $200K in Amazon\n\nHowever, analysts expect growth to be similar to the 20% growth of the last decade.\nAnd at today's high margin of safety, we're likely getting a good deal to compensate for BIDU's growth uncertainty and complex risk profile.\nReason 3: Highly Attractive Valuation\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU growing at the rates analysts expect in the future has historically been valued at 23X to 26X earnings.\n(Source: FactSet Research Terminal)\nBIDU is currently trading at 20.4X forward earnings and 13.6X EV/EBITDA.\nEV/EBITDA is market cap + net debt/EBITDA and is Joel Greenblatt's and private equity's favorite valuation metric.\nBaidu's 13-year median EV/EBITDA is 23.2, and its trading at 13.6, implying a potential 42% discount to fair value.\n\n\n\n\nMetric\nHistorical Fair Value (12-years)\n2020\n2021\n2022\n2023\n\n\nEarnings\n25.0\n$243.87\n$261.27\n$307.91\n$357.77\n\n\nOwner Earnings (Buffett smoothed out FCF) - 10 yr\n23.5\n$324.46\n$394.46\nNA\nNA\n\n\nOperating Cash Flow\n19.9\n$202.33\n$321.22\n$420.37\n$448.64\n\n\nFree Cash Flow (11-yr)\n27.5\n$220.77\n$408.53\n$497.28\nNA\n\n\nEBITDA\n22.0\n$190.60\n$291.18\n$370.80\n$459.36\n\n\nEBIT (operating income)\n34.5\n$207.78\n$261.14\n$328.78\n$392.83\n\n\nAverage\n$224.60\n$312.71\n$373.81\n$410.40\n\n\nCurrent Price\n$215.83\n\n\nDiscount To Fair Value\n3.91%\n30.98%\n42.26%\n47.41%\n\n\nUpside To Fair Value\n4%\n45%\n73%\n90%\n\n\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU is about 31% historically undervalued right now, meaning that if it grows as expected through 2023 and returns to fair value that's 90% upside potential.\n\n$350 is the median 12-month price target\n65% upside potential over the next 12 months according to analysts\n\nAnd that guestimate is 100% justified by fundamentals.\n\n\n\n\nRating\nMargin Of Safety For Speculative 9/12 Blue-Chip Quality Companies\n2020 Price\n2021 Price\n2022 Price\n\n\nPotentially Reasonable Buy\n0%\n$224.60\n$312.71\n$373.81\n\n\nPotentially Good Buy\n25%\n$168.45\n$234.53\n$280.35\n\n\nPotentially Strong Buy\n35%\n$145.99\n$203.26\n$242.97\n\n\nPotentially Very Strong Buy\n45%\n$123.53\n$171.99\n$205.59\n\n\nPotentially Ultra-Value Buy\n55%\n$101.07\n$140.72\n$168.21\n\n\nCurrently\n$213.41\n5%\n32%\n43%\n\n\nUpside To Fair Value (Not Including Dividends)\n5%\n47%\n75%\n\n\n\nAt a 32% margin of safety, Baidu, despite all its risks, is a potentially good buy for more risk-tolerant investors.\nBut the ability to potentially enjoy monster short-term gains is just the cherry on top with Baidu.\nReason 4: Eye-Popping Long-Term Return Potential\nHere is a reasonable idea of what kind of returns you can expect buying BIDU today.\nBaidu 2023 Consensus Return Potential\n(Source: F.A.S.T. Graphs, FactSet Research)\nIf BAIDU grows as analysts expect through 2023, and returns to historical fair value, then analysts expect\n\n75% total returns\n23.3% CAGR returns\nvs -1.3% CAGR S&P 500\n\nFrom its 31% discount, BIDU has the potential to outperform the 36% overvalued S&P 500 by 78% over the next three years.\n(Source: F.A.S.T. Graphs, FactSet Research)\nCorporate earnings growth estimates are rising by the day. Yet the market has already priced in three years of earnings growth totaling 62% or 17.4% CAGR.\nOver the long term, BIDU's return outlook is also very strong.\nBaidu 2026 Consensus Return Potential\n(Source: F.A.S.T. Graphs, FactSet Research)\nIf BIDU grows as analysts expect through 2026 and returns to historical fair value you could expect\n\n179% total returns\n19.8% CAGR\nvs 4.5% CAGR S&P 500\n4.4X better than the market's consensus return potential\n\nIf BIDU delivers as analysts expect, then buying today could almost triple your money in the next five years.\n(Source: F.A.S.T. Graphs, FactSet Research)\nOver the long term, analysts expect\n\n0% yield + 17.5% growth = 17.5% CAGR very long-term total returns (after valuation changes cancel out)\n6% to 28% CAGR range\nvs 7.8% for the S&P and 10.8% for the dividend aristocrats\n\nBaidu Total Returns Since 2006\n\n(Source: Portfolio Visualizer)\nIn the last 15 years, BIDU has turned $1 into $26, adjusted for inflation, and crushed the market with 8X more wealth compounding.\nIt's expected to grow slightly slower than in the past, but the ability to potentially enjoy 17.5% hyper-growth for many years is incredibly attractive.\nBaidu Vs S&P 500 Vs Dividend Aristocrat Inflation-Adjusted Total Return Forecast: $650 Initial Investment\n\n\n\n\nTime Frame (Years)\n5.8% LT Inflation-Adjusted Returns (S&P Consensus)\n8.8% Inflation-Adjusted Returns (aristocrat consensus)\n15.5% Inflation-Adjusted Returns (BIDU consensus)\n\n\n5\n$1,325.65\n$1,524.56\n$1,336.05\n\n\n10\n$1,757.34\n$2,324.28\n$2,746.21\n\n\n15\n$2,329.62\n$3,543.51\n$5,644.73\n\n\n20\n$3,088.26\n$5,402.29\n$11,602.54\n\n\n25\n$4,093.94\n$8,236.11\n$23,848.60\n\n\n30\n$5,427.13\n$12,556.45\n$49,019.95\n\n\n35\n$7,194.46\n$19,143.06\n$100,758.76\n\n\n40\n$9,537.33\n$29,184.74\n$207,106.02\n\n\n45\n$12,643.14\n$44,493.88\n$425,699.02\n\n\n50\n$16,760.36\n$67,833.58\n$875,009.10\n\n\n\nThe ability to grow 2X to 3X as fast as the S&P 500 or aristocrats creates the potential for wealth compounding on a massive scale. Look at how large my $650 initial BIDU investment can grow, assuming analysts are right and management delivers the expected growth over time.\n\n\n\n\nTime Frame (Years)\nRatio S&P vs Aristocrat Consensus\nRatio S&P vs BIDU consensus\n\n\n5\n1.15\n1.01\n\n\n10\n1.32\n1.56\n\n\n15\n1.52\n2.42\n\n\n20\n1.75\n3.76\n\n\n25\n2.01\n5.83\n\n\n30\n2.31\n9.03\n\n\n35\n2.66\n14.01\n\n\n40\n3.06\n21.72\n\n\n45\n3.52\n33.67\n\n\n50\n4.05\n52.21\n\n\n\nOver the long term, the aristocrats are expected to quadruple the S&P 500's wealth compounding. Baidu could potentially deliver 52X as much wealth as the S&P 500.\nIs Baidu likely to grow 17.5% for 50 years? Probably not. But even if it can deliver just 10 to 20 years of hyper-growth, when combined with its attractive current valuation, that's worthy of a small initial investment in my book.\nRisk Profile: Why Baidu Isn't Right For Everyone\nThere are no risk-free companies and no company is right for everyone. You have to be comfortable with the fundamental risk profile.\nFundamental Risk Summary\n\n We think Baidu faces high levels of risk, given intense competition along with questions as to whether its AI-related investment will generate satisfactory returns.\n\n\n Though Baidu is the largest search engine in China, it is competing with the other two Internet giants, Tencent and Alibaba, and Google’s potential return to the Chinese search market is also a threat.\n\n\n Regarding the search engine business, Tencent invested in Sogou, and Alibaba acquired UC Web, which owns a mobile search engine, Shenma. Competition has extended to each key area of mobile Internet usage, such as navigation, O2O services, online video services, and so on. Baidu’s margins have been significantly dragged down by aggressive spending in video content and O2O marketing but recovered to 18.5% in 2017 from 14.2% in 2016 as Baidu divested margin-dilutive businesses.\n\n\n The major Internet companies in China have been investing in AI-related business, such as cloud computing, voice and image recognition, and autonomously driven cars. At the current stage,\n it is difficult to predict whether Baidu will be the final winner in AI and whether the returns will reward its investment.\n\n\n In addition, regulatory risk is a concern. Following the Wei Zexi incident in early 2016, Chinese authorities launched new regulations for online search and advertising, which clearly defined paid search results as advertising. These regulations took effect on Sept. 1, 2016. Given stricter standards for online advertisers, Baidu’s online marketing services revenue growth declined to 1% in 2016. If the local authorities release more policies regarding Internet business, such as online advertising and online finance, Baidu’s revenue could be negatively affected.\n\n\n Since 2017, Baidu has discontinued the disclosure of MAUs for its mobile search and mobile maps, which is possibly due to weaker numbers.\" - Morningstar\n\nBIDU's pivot into the technology of the future is potentially like Satya Nadella taking MSFT into the pure cloud-driven strategy.\nOr it could be like IBM's Watson-based flaying, major promise but poor execution over time.\n\n Baidu has the urgency to strengthen its mobile business because it has not developed another industry-leading business other than its mobile search app for years.\n\n\n Baidu’s share of mobile time spend reduced to 6.9% in March 2019 from 7.3% year over year. Baidu positions its flagship Baidu app (173 million daily average users in March 2019) as a \"super\" app that can serve a wide range of users' needs, such as reading, watching videos, shopping, transportation tickets, food services, and so on, but we believe the app is less of a super app compared with Tencent’s Wechat (1.1 billion monthly average users).\n\n\n It has copied the strategies of its peers by launching a mini-program (181 million MAU in March 2019) and short video apps (sevenfold year over year increase to 98 million MAU in March 2019 as per Questmobile).\" - Morningstar\n\nBaidu has struggled more than most Chinese tech giants to pivot and adapt to the disruption risk that is ever-present in this industry.\n\n We have not factored in the meaningful commercialization of Baidu’s AI-based services, such as voice assistant platform DuerOS, autonomous driving platform Apollo and artificial intelligence cloud services.\n\n\nSearch is driven by an artificial intelligence-powered algorithm, giving Baidu a good foundation in this segment.Baidu is also\n one of the largest and earliest companies to start AI investments in China.Currently, Baidu uses AI to recommend feeds to the app’s users to generate advertising revenue.\n\n\n IQiyi, Baidu’s online video platform, has been a key growth driver stemming from increasing willingness to pay for premium content in China and continuous advertising demand on \n iQiyi. It accounted for 29% of Baidu’s revenue in the first quarter of 2019.\n\n\n In the near term, Baidu will invest heavily in its mobile business in terms of sales and marketing, and traffic acquisition. While meaningful monetization is uncertain, we expect Baidu to increase or maintain its research and development expenditure, which is at 17% of sales in the first quarter of 2019. To fend off major competitor Tencent Video, iQiyi needs to continue to invest in premium content. Therefore, we expect Baidu’s margins to be under pressure in the near term.\" - Morningstar\n\nBut while Baidu has made some questionable investments over the years, its current focus on AI is a logical and prudent one.\nBaidu's competitive advantage in AI stems from being the first mover in Chinese search. It has the most data to feed into its machine learning algorithms, though rivals like Alibaba (BABA) and Tencent (OTCPK:TCEHY) are working hard to eat its lunch.\n\n Baidu generated 68% of its revenue during the year from its online marketing services segment, which mainly sells ads. The segment's revenue has declined year over year for seven straight quarters.\n\n\n That ongoing slowdown is troubling since Baidu's advertising rivals -- like \n Tencent and \n Bilibili --both expanded their advertising businesses over the past year. It also indicates people are spending less time on traditional online searches and more time on other digital platforms.\" - Leo Sun,Motley Fool\n\nIn recent years, BIDU's market share in digital ads has been declining, which means unlike companies like JD, BABA, and TCEHY, it's attempting to pivot from a position of weakness, not strength.\nIt has the resources to invest heavily and hopefully achieve the kinds of impressive growth rates analysts expect. But success is far from guaranteed.\nThis is why I've bought a starter 3 share tracking position in Baidu.\n\ncompared to a $10,000 position in Alphabet (GOOG)\nand an $89,000 investment into Alibaba\nand a $200,000 investment into Amazon(AMZN)\n\nAnd of course, we can't forget about the risks surrounding management and governance.\n\n Robin Yanhong Li, the founder of Baidu, has been the chairman of the board since its inception and has served as the CEO since 2004. Before that, Li worked at IDD Information Services and Infoseek in Silicon Valley, with a special focus on product development in Internet search engines. Li owned 16.4% of the company as of January 2020, and all directors and management together owned 16.5%. Jennifer Xinzhe Li stepped down as CFO in 2017 and was replaced by Herman Yu, formerly of Weibo...\n\n\n Baidu had reputational issues, with the Wei Zexi medical incident being the largest scandal, which led to a management restructuring in 2016. Three vice presidents were dismissed. Qi Lu joined Baidu in January 2017 as group president and COO but resigned in June 2018. Lu has a solid record in the U.S. technology industry, and Baidu’s financial performance substantially improved during his appointment.\n\n\n This incident once again raised the market’s concern about Baidu’s turnover of key executives, including ex-chief scientist Andrew Ng and ex-senior vice president Jin Wang. In May 2019, Baidu announced the departure of senior vice president Hailong Xiang, who had been with Baidu since 2005. His departure is believed to be a result of Baidu’s inability to develop another successful and profitable business outside of search.\n\n\n The introduction of a senior management retirement plan and a young leadership development program signifies Baidu’s determination to revamp its management and reinvigorate its businesses in the new Internet era. Shen Dou leads the mobile ecosystem group now. He has a technical background and puts more focus on more user experience versus maximizing sales. There are now more interactions between the sales, commercial product team, and the user experience team, which we think is better for Baidu’s sustainability.\" - Morningstar\n\nUnlike the management at Tencent, which Morningstar considers \"exemplary\" or the \"deep bench\" at Alibaba, BIDU has struggled with management in recent years.\n\n B shares, which are owned by the CEO and his affiliates, have 10 times the voting rights of Class A shares. Therefore,\n Li controls 55.4% of the equity voting rights as of January 2020.As a result, these Class B shareholders have a disproportionately large influence over key matters such as the election of directors and significant corporate transactions, including mergers and the sale of the company or assets.\" - Morningstar\n\nBIDU's founder and CEO controls 55% of the vote and thus is effectively king of Baidu. If shareholders don't like what management does, they have no recourse other than selling.\nManagement isn't a poor capital allocator, but in recent years it hasn't been firing on all cylinders when it comes to pivoting to growth catalysts as easily as JD, BABA, and TCEHY have.\n\n Some of Baidu’s acquisitions and new business developments have proved unsuccessful.\n\n\n These include the acquisition of 59% of Nuomi, a group-buying service provider, for $160 million in 2013 and the remaining stake in 2014 for an undisclosed sum, and Raven Tech for $90 million in 2017...\n\n\n Baidu’s investments in online-to-offline businesses such as deliveries and Nuomi led to its \n operating margin declining from 26.1% in 2014 to 14.2% in 2016 but they did not gain as much scale as Meituan.\n\n\n However, we refrain from giving a Poor stewardship rating to Baidu for several reasons.\n\n\nBaidu made the right decision in moving away from the O2O businesses, which led to margin improvement to 18.5% in 2017and investing in mobile and AI, which we believe is sensible given that they complement its strong core search business.\n\n\n Also, Baidu’s return on invested capital has been way higher than its weighted average cost of capital of 9.8% over the past 10 years.\" - Morningstar\n\nAnd of course, every investor in Chinese tech has to understand VIE regulatory risk.\n\n Like many other Chinese Internet companies listed in overseas markets, Baidu operates under a \n variable interest entity structure designed to let companies bypass Chinese legal restrictions on foreign ownership in certain sectors.\n\n\n Baidu's foreign investors essentially hold shares of Baidu's VIE domiciled in the Cayman Islands.\n We don't expect any legal challenges to VIE structures by the Chinese government and believe that Baidu will consider a China depositary receipt listing in the future.\n\n\n However, if the legitimacy of Baidu's related VIE is found to violate applicable law or regulation, Chinese regulatory authorities might take action, including revoking the business and operating licenses of Baidu's subsidiaries or the VIE, or discontinuing, restricting, or restructuring Baidu's operations.\n\n\n Since the Chinese Ministry of Commerce has the jurisdiction to regulate VIEs,\n we believe overseas investors would have limited legal rights.\" - Morningstar\n\nVIE regulatory risk is the reason that all Chinese tech stocks are speculative, and always will be, regardless of quality (Tencent is a 12/12 speculative Ultra SWAN for this reason).\nHow do you measure and factor in such a complex risk profile?\nBy turning to the expert consensus.\n\n39 analysts that cover BIDU and collectively know it better than anyone other than management\nand whether or not scary headlines meaningfully alter the investment thesis\n2 credit rating agencies\n3 ESG risk rating agencies\n44 total experts that monitor BIDU's risk profile for DK and will let us know if the thesis is weakening, strengthening or breaks\n\nESG Material Financial Risk Analysis\nEssential To Fully Understanding A Company's Overall Risk Profile Especially Chinese Tech Companies\nAccording to the world's best risk assessors, ESG metrics are a critical component of a company's overall risk profile. Here's who considers ESG important and builds it into their safety models and ratings.\n\nBlackRock - #1 asset manager in the world\nMSCI - #1 indexing giant\nMorningstar\nReuters'/Refinitiv\nISS (Institutional Shareholder Services) - #1 corporate proxy firm on earth\nS&P\nFitch\nMoody's\nDBRS (Canadian credit rating agency)\nAM Best (insurance industry rating agency)\nBank of America - one of the 16 most accurate economic/analyst teams in the world according to Market Watch\nBloomberg\nFactSet Research\nState Street - one of the largest custodial banks on earth\nWells Fargo - one of the 16 most accurate economic/analyst teams in the world according to Market Watch\nNAREIT\n\n\n Companies with strong ESG profiles may be better positioned for future challenges and experience\n fewer instances of bribery, corruption, and fraud.\" - MSCI (Emphasis added)\n\nBank of America's research finds that ESG metrics also help improve the long-term profitability and outcomes at companies.\n\nPunchline: higher ROE, lower risk & lower cost of capital\n\n\n We find that companies with greater gender diversity at the board/management level typically see \n higher ROE and lower earnings risk than peers.\n\n\n Moreover, based on disclosure data from ICE, we find gender diversity in management is associated with a \n ~20% premium on P/E on an overall and sector-neutral basis.\n\n\n Ethnic and racial workforce diversity shows similarly strong results:\n higher ROE, lower risk, and significant premia on P/E and P/BV.\" - Bank of America (emphasis original)\n\nESG isn't about political correctness, it's about sound business practices and maximizing long-term profits by avoiding blowing up companies in the short to medium-term.\nBaidu Consensus ESG Risk Rating\n\n\n\n\nRating Agency\nIndustry Percentile\nRating Agency Classification\n\n\nMSCI\n54.0%\nBB Below-Average\n\n\nMorningstar/Sustainalytics\n40.2%\n24.4/100 Medium Risk\n\n\nReuters'/Refinitiv (Combined ESG Rating)\n52.6%\nSatisfactory\n\n\nS&P\nNA\nNA\n\n\nConsensus\n48.9%\nAverage\n\n\n\n(Sources: MSCI, Morningstar, Reuters'/Refinitiv)\nAccording to Morningstar, MSCI, and Reuter's BIDU's overall handling of its long-term financial ESG risk is average, in the 49th percentile.\n\nwhich is actually the highest ESG score of any of the big China tech stocks\nESG investors probably want to avoid Chinese companies\n\n\n(Source: MSCI)\nChinese companies tend to score poorly on ESG due to governance issues.\nBut note that BIDU used to be rated CCC very poor and has seen two rating upgrades in two years.\n(Source: BIDU IR)\nIn recent years BIDU did establish an ESG committee that may explain the improvement in ESG risk scores.\n(Source: BIDU IR)\n\n To enhance the integrity of mobile information and continue to be a leader in AI, we devote time and attention to the needs and demands of stakeholders, including suppliers, partners, governments, social institutions, users, employees, communities, and the environment itself.\n\n\n We actively explore low carbon operations, sustainable economic indicators, supply chain management, intellectual property, technological innovation, compliance, data privacy, information security, user experience, personnel training, employee rights, and community engagement.\n\n\n We aim to fully integrate an ESG philosophy and standards into our management, solve social problems with technology, leverage our corporate strength and innovation capability, and contribute long-term, sustainable value to stakeholders and the human community at large.\" - BIDU ESG mission statement\n\nBIDU is talking the talk, and apparently beginning to walk the walk as well when it comes to managing long-term risk.\n\nMorningstar rates BIDU below average compared to its peers, but on par with the likes of Spotify, Snap, and MercadoLibre. In fact, Morningstar considers BIDU's ESG risk to be in the top 36% of all companies it rates.\n(Source: Reuters'/Refinitiv)\nReuters/Refinitv is the most robust ESG model we have access to. Over 450 metrics in total make up that score.\n\nBIDU scores rather poorly on governance and environmental issues\n\nThe bottom line is that all companies have complex risk profiles that need to be considered before investing.\nThe DK Safety and quality model don't ignore any risk, and BIDU's risks are firmly baked into its speculative blue-chip rating.\nA 32% margin of safety compensates us appropriately for all of the company's risks, and what could go wrong in the future.\nHowever, more risk-intolerant investors will want to avoid BIDU and Chinese companies in general.\nBottom Line: It's Time To Be Greedy When Others Are Fearful About Baidu\nIn this highly overvalued market, it's easy to throw up your hands and shout \"everything is expensive and it's dangerous to buy any stock.\"\nWhile there are many speculative bubbles that could destroy your retirement dreams, there are ALWAYS great blue-chip bargains available.\nBaidu is one of those potentially exceptional long-term opportunities right now. Its 40% bear market, partially created by forced institutional margin call selling, allows anyone comfortable with its risk profile to buy the Google of China at a 32% margin of safety.\nIs Baidu speculative? Sure, all Chinese tech stocks are. Is it worth risking a small amount of discretionary savings to see whether Baidu can deliver on its AI/Driverless car/Streaming plans?\nI think so. If Baidu lives up to expectations, then it could potentially double within three years and almost triple within five.\nBarring the most extreme stock market bubble in history, one that surpasses the tech mania of the late '90s, there is no chance the S&P 500 and Nasdaq will even come close.\nAnd to achieve such returns Baidu doesn't have to fly off into a speculative bubble. It merely has to return to fair value and grow at the impressive rates analysts expect and it has delivered in the past.\nI can't tell you what Baidu's price will do over the next year. I can tell you that the 65% upside analysts expect over the next 12 months is 100% fundamentally justified.\nFor those comfortable with the complex risk profile inherent to Chinese tech stocks, a small position in Baidu at some of the best valuations in years is a reasonable and prudent decision.\nBasically, it's time to be greedy when others are fearful about the Google of China.","news_type":1},"isVote":1,"tweetType":1,"viewCount":234,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":103137514,"gmtCreate":1619754786338,"gmtModify":1704271911028,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Up, up and away","listText":"Up, up and away","text":"Up, up and away","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/103137514","repostId":"1153490597","repostType":4,"repost":{"id":"1153490597","pubTimestamp":1619741154,"share":"https://ttm.financial/m/news/1153490597?lang=&edition=fundamental","pubTime":"2021-04-30 08:05","market":"us","language":"en","title":"S&P 500 notches record close after strong earnings from Facebook and Apple","url":"https://stock-news.laohu8.com/highlight/detail?id=1153490597","media":"CNBC","summary":"The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up 239.98 points, or 0.7%, at 34,060.36. The S&P 500 advanced just under 0.7% to finish the day at 4,211.47, a new closing high.The tech-heavy Nasdaq Composite, which began the day up 1%, underperformed with a gain of just over 0.2% to end the session at 14,082.55.Apple, which reported earnings yester","content":"<div>\n<p>The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P 500 notches record close after strong earnings from Facebook and Apple</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P 500 notches record close after strong earnings from Facebook and Apple\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-30 08:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","AAPL":"苹果",".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1153490597","content_text":"The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up 239.98 points, or 0.7%, at 34,060.36. The S&P 500 advanced just under 0.7% to finish the day at 4,211.47, a new closing high.The tech-heavy Nasdaq Composite, which began the day up 1%, underperformed with a gain of just over 0.2% to end the session at 14,082.55.Apple, which reported earnings yesterday afternoon, said that sales jumped 54% during the quarter, with each product category seeing double-digit growth. The company also said it would increase its dividend by 7%, and authorized $90 billion in share buybacks. Still, Apple shares ended the day just under the flatline.“The primary market trend remains positive,” said Keith Lerner, chief market strategist at Truist. “But we expect a choppier environment as tensions are set to persist between better economic growth and earnings prospects versus the potential for higher taxes and rising interest rates as the economy normalizes,” he added.Thursday marks President Joe Biden’s 100th day in office. On Wednesday evening, he made his first address to a joint session of Congress where he pushed his so-far popular agenda, which includes a $2 trillion infrastructure plan as well as a freshly unveiled, $1.8 trillion plan for families, children and students.Thursday is also the busiest day of the quarterly earnings season, with roughly 11% of the S&P 500 slated to provide quarterly updates.McDonald’s published its results before the opening bell and told investors that its sales have finally topped pre-pandemic levels. The Dow component also raised its outlook for systemwide sales growth. The stock added 1.2% at the close.Caterpillar, which also reported on Thursday, lost 2% while Merck dropped 4.4% following disappointing results. Amazon issued its first-quarter results shortlyafter market close. The e-commerce giant surpassed analysts’ expectations on earnings and revenue.Gilead Sciences, Twitter, U.S. Steel and Western Digital will also post results after the bell.Facebook’s revenue jumped 48%, driven by higher-priced ads, sending its stock up 7.3% and to a record. Qualcomm shares added 4.4% after reporting a 52% jump in revenue.Economic data released Thursday gave investors an update on the progress of the economic recovery.First-quarter GDP hit an annualized rate of 6.4%, according to a report published by the Bureau of Economic Analysis, a sign that the U.S. economy began 2021 with an accelerationof commercial activity. Outside of the reopening-fueled third-quarter surge last year, it was the best period for GDP since the third quarter of 2003.The Labor Department, meanwhile, reported that initial jobless claims last week totaled 553,000, just above the 528,000 estimate issued by Dow Jones.The Federal Reserve said Wednesday that it would hold interest rates near zero. The S&P slid from its high after Federal Reserve Chairman Jerome Powell said during a press conference following the Federal Open Market Committee’s decision that there are some signs of froth in the market.“Rates remain unchanged for now and, despite improving economic data, taper talk remained off the table at today’s Federal Reserve meeting,” said Bethany Payne, portfolio manager at Janus Henderson.“As vaccination rates accelerate, employment strengthens, and expansive fiscal policy adds further support to household and business incomes, investors are now looking for signs of whether the central bank safety net could be withdrawn sooner than expected,” she added.Big Tech earningsAmazon sales surge 44% as it smashes earnings expectationsNio Reports Q1 Beat Amid Strong Demand, Forecasts Deliveries Growth Despite Chip ShortagesTwitter stock plunges on user miss and low guidanceWestern Digital's quarterly results and outlook topped Wall Street estimatesGilead Sciences Q1 Earnings Beat EstimatesWireless-Chip Maker Skyworks Squeaks By Second-Quarter TargetsDexCom Surpasses Q1 Earnings and Revenue EstimatesUnited States Steel Q1 Earnings Surpass Estimates","news_type":1},"isVote":1,"tweetType":1,"viewCount":114,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":109920760,"gmtCreate":1619659907650,"gmtModify":1704727541682,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Way to go!!!&nbsp;","listText":"Way to go!!!&nbsp;","text":"Way to go!!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/109920760","repostId":"1137964402","repostType":4,"repost":{"id":"1137964402","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1619651546,"share":"https://ttm.financial/m/news/1137964402?lang=&edition=fundamental","pubTime":"2021-04-29 07:12","market":"us","language":"en","title":"Apple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks","url":"https://stock-news.laohu8.com/highlight/detail?id=1137964402","media":"Tiger Newspress","summary":"Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple did not issue official guidance for what it expects in the quarter ending in June.Apple authorized $90 billion in share buybacks.Apple stock rose over 4% at one point in extended trading.Apple reported double-digit growth in every single one of its product categories, and its most important product line, the iPhone, was up 65","content":"<p><b>KEY POINTS</b></p><ul><li>Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</li><li>Apple did not issue official guidance for what it expects in the quarter ending in June.</li><li>Apple authorized $90 billion in share buybacks.</li></ul><p>Apple&nbsp;reported&nbsp;a blowout quarter&nbsp;on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</p><p>Apple stock rose over 4% at one point in extended trading.</p><p><img src=\"https://static.tigerbbs.com/4e791f63f460807906f1793c2d58933e\" tg-width=\"1302\" tg-height=\"833\"></p><p>Apple reported double-digit growth in every single one of its product categories, and its&nbsp;most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales&nbsp;did&nbsp;better, with its computers up 70.1% and iPad&nbsp;sales&nbsp;growing nearly 79% on an annual basis.</p><p>Apple said it would increase its dividend by 7%&nbsp;to $0.22 per share&nbsp;and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay&nbsp;and 2019′s $75 billion.</p><p>Here’s how Apple did versus Refinitiv estimates:</p><ul><li><b>EPS</b>:&nbsp;$1.40&nbsp;vs. $0.99 estimated</li><li><b>Revenue</b>:&nbsp;$89.58&nbsp;billion&nbsp;vs. $77.36&nbsp;billion&nbsp;estimated, up 53.7% year-over-year</li><li><b>iPhone revenue</b>:&nbsp;$47.94 billion&nbsp;vs. $41.43&nbsp;billion&nbsp;estimated, up&nbsp;65.5% year-over-year</li><li><b>Services revenue</b>:&nbsp;$16.90 billion&nbsp;vs. $15.57&nbsp;billion&nbsp;estimated, up 26.7% year over&nbsp;year</li><li><b>Other Products revenue</b>:&nbsp;$7.83&nbsp;billion&nbsp;vs. $7.79&nbsp;billion&nbsp;estimated,&nbsp;up 24%&nbsp;year-over-year</li><li><b>Mac revenue</b>:&nbsp;$9.10&nbsp;billion&nbsp;vs. $6.86&nbsp;billion&nbsp;estimated, up 70.1% year-over-year</li><li><b>iPad revenue</b>:&nbsp;$7.80 billion&nbsp;vs. $5.58&nbsp;billion&nbsp;estimated, up 78.9% year-over-year</li><li><b>Gross margin</b>:&nbsp;42.5% vs. 39.8%&nbsp;estimated</li></ul><p>Apple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue&nbsp;guidance since the start of the pandemic, citing uncertainty.&nbsp;This is Apple’s second quarter in a row with double-digit growth in all product categories.&nbsp;Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.</p><p>Apple has said in the past months that its business has been boosted by the pandemic as consumers&nbsp;and businesses&nbsp;bought&nbsp;computers&nbsp;to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies&nbsp;open up.</p><p>Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this&nbsp;moment in their own lives, as well as the optimism consumers seem to feel about better days&nbsp;ahead for all of us.”</p><p>Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac&nbsp;laptops&nbsp;that used its own M1 chips&nbsp;for longer battery life, instead of processors sold by&nbsp;Intel.&nbsp;iPad sales were up&nbsp;nearly 79% year-over-year.</p><p>Neither of those&nbsp;results&nbsp;include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.</p><p>“We’re seeing strong first-time buyers on the Mac&nbsp;…&nbsp;it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that&nbsp;…&nbsp;it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”</p><p>Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.</p><p>In greater China, which includes the mainland, Hong Kong, and Taiwan,&nbsp;Apple’s revenue increased over&nbsp;87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic.&nbsp;Every other geographical category, including the Americas and Europe, were also up on an annual basis.</p><p><img src=\"https://static.tigerbbs.com/37a8b45c92174e3c9ab224d9a85f5e2d\" tg-width=\"1910\" tg-height=\"1114\" referrerpolicy=\"no-referrer\"></p><p>Apple’s&nbsp;high-margin&nbsp;services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.</p><p>One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.</p><p>“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.</p><p>However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.</p><p>“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.</p><p>Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-04-29 07:12</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p><b>KEY POINTS</b></p><ul><li>Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</li><li>Apple did not issue official guidance for what it expects in the quarter ending in June.</li><li>Apple authorized $90 billion in share buybacks.</li></ul><p>Apple&nbsp;reported&nbsp;a blowout quarter&nbsp;on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</p><p>Apple stock rose over 4% at one point in extended trading.</p><p><img src=\"https://static.tigerbbs.com/4e791f63f460807906f1793c2d58933e\" tg-width=\"1302\" tg-height=\"833\"></p><p>Apple reported double-digit growth in every single one of its product categories, and its&nbsp;most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales&nbsp;did&nbsp;better, with its computers up 70.1% and iPad&nbsp;sales&nbsp;growing nearly 79% on an annual basis.</p><p>Apple said it would increase its dividend by 7%&nbsp;to $0.22 per share&nbsp;and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay&nbsp;and 2019′s $75 billion.</p><p>Here’s how Apple did versus Refinitiv estimates:</p><ul><li><b>EPS</b>:&nbsp;$1.40&nbsp;vs. $0.99 estimated</li><li><b>Revenue</b>:&nbsp;$89.58&nbsp;billion&nbsp;vs. $77.36&nbsp;billion&nbsp;estimated, up 53.7% year-over-year</li><li><b>iPhone revenue</b>:&nbsp;$47.94 billion&nbsp;vs. $41.43&nbsp;billion&nbsp;estimated, up&nbsp;65.5% year-over-year</li><li><b>Services revenue</b>:&nbsp;$16.90 billion&nbsp;vs. $15.57&nbsp;billion&nbsp;estimated, up 26.7% year over&nbsp;year</li><li><b>Other Products revenue</b>:&nbsp;$7.83&nbsp;billion&nbsp;vs. $7.79&nbsp;billion&nbsp;estimated,&nbsp;up 24%&nbsp;year-over-year</li><li><b>Mac revenue</b>:&nbsp;$9.10&nbsp;billion&nbsp;vs. $6.86&nbsp;billion&nbsp;estimated, up 70.1% year-over-year</li><li><b>iPad revenue</b>:&nbsp;$7.80 billion&nbsp;vs. $5.58&nbsp;billion&nbsp;estimated, up 78.9% year-over-year</li><li><b>Gross margin</b>:&nbsp;42.5% vs. 39.8%&nbsp;estimated</li></ul><p>Apple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue&nbsp;guidance since the start of the pandemic, citing uncertainty.&nbsp;This is Apple’s second quarter in a row with double-digit growth in all product categories.&nbsp;Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.</p><p>Apple has said in the past months that its business has been boosted by the pandemic as consumers&nbsp;and businesses&nbsp;bought&nbsp;computers&nbsp;to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies&nbsp;open up.</p><p>Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this&nbsp;moment in their own lives, as well as the optimism consumers seem to feel about better days&nbsp;ahead for all of us.”</p><p>Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac&nbsp;laptops&nbsp;that used its own M1 chips&nbsp;for longer battery life, instead of processors sold by&nbsp;Intel.&nbsp;iPad sales were up&nbsp;nearly 79% year-over-year.</p><p>Neither of those&nbsp;results&nbsp;include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.</p><p>“We’re seeing strong first-time buyers on the Mac&nbsp;…&nbsp;it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that&nbsp;…&nbsp;it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”</p><p>Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.</p><p>In greater China, which includes the mainland, Hong Kong, and Taiwan,&nbsp;Apple’s revenue increased over&nbsp;87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic.&nbsp;Every other geographical category, including the Americas and Europe, were also up on an annual basis.</p><p><img src=\"https://static.tigerbbs.com/37a8b45c92174e3c9ab224d9a85f5e2d\" tg-width=\"1910\" tg-height=\"1114\" referrerpolicy=\"no-referrer\"></p><p>Apple’s&nbsp;high-margin&nbsp;services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.</p><p>One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.</p><p>“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.</p><p>However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.</p><p>“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.</p><p>Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137964402","content_text":"KEY POINTSApple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple did not issue official guidance for what it expects in the quarter ending in June.Apple authorized $90 billion in share buybacks.Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple stock rose over 4% at one point in extended trading.Apple reported double-digit growth in every single one of its product categories, and its most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales did better, with its computers up 70.1% and iPad sales growing nearly 79% on an annual basis.Apple said it would increase its dividend by 7% to $0.22 per share and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay and 2019′s $75 billion.Here’s how Apple did versus Refinitiv estimates:EPS: $1.40 vs. $0.99 estimatedRevenue: $89.58 billion vs. $77.36 billion estimated, up 53.7% year-over-yeariPhone revenue: $47.94 billion vs. $41.43 billion estimated, up 65.5% year-over-yearServices revenue: $16.90 billion vs. $15.57 billion estimated, up 26.7% year over yearOther Products revenue: $7.83 billion vs. $7.79 billion estimated, up 24% year-over-yearMac revenue: $9.10 billion vs. $6.86 billion estimated, up 70.1% year-over-yeariPad revenue: $7.80 billion vs. $5.58 billion estimated, up 78.9% year-over-yearGross margin: 42.5% vs. 39.8% estimatedApple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue guidance since the start of the pandemic, citing uncertainty. This is Apple’s second quarter in a row with double-digit growth in all product categories. Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.Apple has said in the past months that its business has been boosted by the pandemic as consumers and businesses bought computers to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies open up.Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us.”Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac laptops that used its own M1 chips for longer battery life, instead of processors sold by Intel. iPad sales were up nearly 79% year-over-year.Neither of those results include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.“We’re seeing strong first-time buyers on the Mac … it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that … it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.In greater China, which includes the mainland, Hong Kong, and Taiwan, Apple’s revenue increased over 87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic. Every other geographical category, including the Americas and Europe, were also up on an annual basis.Apple’s high-margin services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.","news_type":1},"isVote":1,"tweetType":1,"viewCount":156,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":377404404,"gmtCreate":1619541736508,"gmtModify":1704725715013,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Hold position for now","listText":"Hold position for now","text":"Hold position for now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/377404404","repostId":"1123159959","repostType":4,"repost":{"id":"1123159959","pubTimestamp":1619534712,"share":"https://ttm.financial/m/news/1123159959?lang=&edition=fundamental","pubTime":"2021-04-27 22:45","market":"hk","language":"en","title":"Ant Group's fast-tracked IPO prompts Chinese probe","url":"https://stock-news.laohu8.com/highlight/detail?id=1123159959","media":"seekingalpha","summary":"The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant","content":"<p>The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA)&nbsp;planned IPO&nbsp;dual listing latelast year.</p>\n<p>Wall Street Journal sourcessay the ongoing probe is looking into the regulators who approved the listing, local officials who promoted the listing, and the large state firms that would financially benefit from the offering.</p>\n<p>The government pulled Ant Group's blockbuster debut at the last minute, citing concerns about the company's lacking regulatory scrutiny. The move came after Ant Group founder and former Alibaba chairman Jack Ma publicly criticized regulators.</p>\n<p>The probe continues to cloud Ant's future IPO plans despite the company working on concessions, which reportedly include restructuring into a financial holding company and Jack Ma stepping backfrom the company.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ant Group's fast-tracked IPO prompts Chinese probe</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAnt Group's fast-tracked IPO prompts Chinese probe\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-27 22:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA) planned IPO dual listing latelast year.\nWall Street Journal sourcessay the ...</p>\n\n<a href=\"https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1123159959","content_text":"The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA) planned IPO dual listing latelast year.\nWall Street Journal sourcessay the ongoing probe is looking into the regulators who approved the listing, local officials who promoted the listing, and the large state firms that would financially benefit from the offering.\nThe government pulled Ant Group's blockbuster debut at the last minute, citing concerns about the company's lacking regulatory scrutiny. The move came after Ant Group founder and former Alibaba chairman Jack Ma publicly criticized regulators.\nThe probe continues to cloud Ant's future IPO plans despite the company working on concessions, which reportedly include restructuring into a financial holding company and Jack Ma stepping backfrom the company.","news_type":1},"isVote":1,"tweetType":1,"viewCount":134,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":376401812,"gmtCreate":1619139769236,"gmtModify":1704720214475,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Time to buy?&nbsp;","listText":"Time to buy?&nbsp;","text":"Time to buy?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/376401812","repostId":"2129336573","repostType":4,"isVote":1,"tweetType":1,"viewCount":346,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":376401812,"gmtCreate":1619139769236,"gmtModify":1704720214475,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Time to buy?&nbsp;","listText":"Time to buy?&nbsp;","text":"Time to buy?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/376401812","repostId":"2129336573","repostType":4,"repost":{"id":"2129336573","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1619121680,"share":"https://ttm.financial/m/news/2129336573?lang=&edition=fundamental","pubTime":"2021-04-23 04:01","market":"us","language":"en","title":"U.S. stocks drop on news of Biden tax proposals","url":"https://stock-news.laohu8.com/highlight/detail?id=2129336573","media":"Reuters","summary":"AT&T rises on strong quarterly resultsU.S. weekly jobless claims decline furtherIndexes down: Dow 0.","content":"<ul><li>AT&amp;T rises on strong quarterly results</li><li>U.S. weekly jobless claims decline further</li><li>Indexes down: Dow 0.94%, S&amp;P 500 0.92%, Nasdaq 0.94%</li></ul><p>By Herbert Lash</p><p>NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.</p><p>The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.</p><p>\"If it had a chance of passing, we'd be down 2,000 points,\" said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.</p><p>Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said when a proposal is floated about raising taxes or capital gains, everybody gets excited, sells first and asks questions later.</p><p>\"It is more of a short-term, knee-jerk reaction,\" he said.</p><p>Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.</p><p>The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.</p><p>Markets have been listless after the Dow    and S&amp;P 500&nbsp;scaled all-time peaks last week as investors await guidance from Microsoft Corp   , Google parent Alphabet Inc    and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc    when they report earnings next week.</p><p>\"Until we get out of this information vacuum the market is going to be generally directionless,\" he said. \"All that really matters moving forward is what are those big tech earnings next week?\"</p><p>During the session, the S&amp;P 500 healthcare sector hit a fresh record high while industrials were the biggest gainers.</p><p>American Airlines Group Inc and Southwest Airlines Co    reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both shares fell.</p><p>Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh <a href=\"https://laohu8.com/S/AONE\">one</a>-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.</p><p>The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and leisure spending, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.</p><p>Equities have likely reached a near-term top as expectations are too high, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.</p><p>\"There's going to be continued positive moves throughout the remainder of the year but we are due for some sort of a pullback in the very short term,\" he said. \"Then the dip buyers will step back in.\"</p><p>First-quarter earnings are expected to increase 31.9% from a year ago, the highest rate since the fourth quarter, according to IBES Refinitiv data.</p><p>All 11 S&amp;P 500 sectors closed lower as Microsoft, Apple Inc , Amazon.com Inc and Tesla Inc weighted the most on the downdraft.</p><p>The Dow Jones Industrial Average fell 0.94% to 33,815.9, the S&amp;P 500 lost 0.92% at 4,134.98, and the Nasdaq Composite dropped 0.94% to 13,818.41.</p><p>Volume on U.S. exchanges was 10.35 billion shares, compared with the 10.32 billion full-session average over the last 20 trading days.</p><p>Chipmaker Intel Corp forecast second-quarter revenue above Wall Street targets, betting its next generation of processors for data centers and PCs will meet growing demand for cloud-based services. Shares slipped about 1% in after-hours trade.</p><p>AT&amp;T Inc beat Wall Street revenue targets as the U.S. economic reopening following pandemic-linked restrictions boosted smartphone sales and the media business. AT&amp;T shares rose 4.2%.</p><p>Biogen Inc beat quarterly profit estimates on stronger-than-expected sales for its muscle wasting disorder drug, though concerns over its reliance on its yet-to-be approved Alzheimer's therapy, aducanumab, weighed on shares. Biogen shares fell 4.0%.</p><p>Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.</p><p>The S&amp;P 500 posted 84 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 20 new lows. (Reporting by Herbert Lash, additional reporting by Lewis Krauskopf in New York, Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>U.S. stocks drop on news of Biden tax proposals</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nU.S. stocks drop on news of Biden tax proposals\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-04-23 04:01</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<ul><li>AT&amp;T rises on strong quarterly results</li><li>U.S. weekly jobless claims decline further</li><li>Indexes down: Dow 0.94%, S&amp;P 500 0.92%, Nasdaq 0.94%</li></ul><p>By Herbert Lash</p><p>NEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.</p><p>The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.</p><p>\"If it had a chance of passing, we'd be down 2,000 points,\" said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.</p><p>Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said when a proposal is floated about raising taxes or capital gains, everybody gets excited, sells first and asks questions later.</p><p>\"It is more of a short-term, knee-jerk reaction,\" he said.</p><p>Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.</p><p>The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.</p><p>Markets have been listless after the Dow    and S&amp;P 500&nbsp;scaled all-time peaks last week as investors await guidance from Microsoft Corp   , Google parent Alphabet Inc    and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc    when they report earnings next week.</p><p>\"Until we get out of this information vacuum the market is going to be generally directionless,\" he said. \"All that really matters moving forward is what are those big tech earnings next week?\"</p><p>During the session, the S&amp;P 500 healthcare sector hit a fresh record high while industrials were the biggest gainers.</p><p>American Airlines Group Inc and Southwest Airlines Co    reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both shares fell.</p><p>Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh <a href=\"https://laohu8.com/S/AONE\">one</a>-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.</p><p>The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and leisure spending, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.</p><p>Equities have likely reached a near-term top as expectations are too high, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.</p><p>\"There's going to be continued positive moves throughout the remainder of the year but we are due for some sort of a pullback in the very short term,\" he said. \"Then the dip buyers will step back in.\"</p><p>First-quarter earnings are expected to increase 31.9% from a year ago, the highest rate since the fourth quarter, according to IBES Refinitiv data.</p><p>All 11 S&amp;P 500 sectors closed lower as Microsoft, Apple Inc , Amazon.com Inc and Tesla Inc weighted the most on the downdraft.</p><p>The Dow Jones Industrial Average fell 0.94% to 33,815.9, the S&amp;P 500 lost 0.92% at 4,134.98, and the Nasdaq Composite dropped 0.94% to 13,818.41.</p><p>Volume on U.S. exchanges was 10.35 billion shares, compared with the 10.32 billion full-session average over the last 20 trading days.</p><p>Chipmaker Intel Corp forecast second-quarter revenue above Wall Street targets, betting its next generation of processors for data centers and PCs will meet growing demand for cloud-based services. Shares slipped about 1% in after-hours trade.</p><p>AT&amp;T Inc beat Wall Street revenue targets as the U.S. economic reopening following pandemic-linked restrictions boosted smartphone sales and the media business. AT&amp;T shares rose 4.2%.</p><p>Biogen Inc beat quarterly profit estimates on stronger-than-expected sales for its muscle wasting disorder drug, though concerns over its reliance on its yet-to-be approved Alzheimer's therapy, aducanumab, weighed on shares. Biogen shares fell 4.0%.</p><p>Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.</p><p>The S&amp;P 500 posted 84 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 20 new lows. (Reporting by Herbert Lash, additional reporting by Lewis Krauskopf in New York, Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","QID":"纳指两倍做空ETF","09086":"华夏纳指-U","MSFT":"微软","QNETCN":"纳斯达克中美互联网老虎指数","SPXU":"三倍做空标普500ETF",".DJI":"道琼斯","SDOW":"道指三倍做空ETF-ProShares","APR":"Apria, Inc.","LHDX":"Lucira Health, Inc.","DXD":"道指两倍做空ETF","SDS":"两倍做空标普500ETF",".IXIC":"NASDAQ Composite","QLD":"纳指两倍做多ETF","SSO":"两倍做多标普500ETF","AAL":"美国航空","T":"美国电话电报","CGEM":"Cullinan Therapeutics","SQQQ":"纳指三倍做空ETF","03086":"华夏纳指","SCHW":"嘉信理财","SH":"标普500反向ETF","LUV":"西南航空","DDM":"道指两倍做多ETF","OEX":"标普100","AAPL":"苹果","QQQ":"纳指100ETF","TQQQ":"纳指三倍做多ETF","BIIB":"渤健公司","AMZN":"亚马逊","SANA":"Sana Biotechnology, Inc.","UDOW":"道指三倍做多ETF-ProShares","PSQ":"纳指反向ETF","IVV":"标普500指数ETF",".SPX":"S&P 500 Index","OEF":"标普100指数ETF-iShares","DJX":"1/100道琼斯","TSLA":"特斯拉","UPRO":"三倍做多标普500ETF","LABP":"Landos Biopharma, Inc.","DOG":"道指反向ETF"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2129336573","content_text":"AT&T rises on strong quarterly resultsU.S. weekly jobless claims decline furtherIndexes down: Dow 0.94%, S&P 500 0.92%, Nasdaq 0.94%By Herbert LashNEW YORK, April 22 (Reuters) - U.S. stocks dived on Thursday on reports President Joe Biden planned to almost double the capital gains tax, news analysts said provided an excuse to take profits in a directionless market ahead of big tech's earnings next week.The three main indexes on Wall Street also fell on reports that Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.\"If it had a chance of passing, we'd be down 2,000 points,\" said Thomas Hayes, chairman and managing member at hedge fund Great Hill Capital LLC.Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago, said when a proposal is floated about raising taxes or capital gains, everybody gets excited, sells first and asks questions later.\"It is more of a short-term, knee-jerk reaction,\" he said.Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.The proposal targets about $1 trillion for child care, universal pre-kindergarten education and paid leave for workers, the sources said.Markets have been listless after the Dow    and S&P 500 scaled all-time peaks last week as investors await guidance from Microsoft Corp   , Google parent Alphabet Inc    and Facebook Inc    when they report earnings next week.\"Until we get out of this information vacuum the market is going to be generally directionless,\" he said. \"All that really matters moving forward is what are those big tech earnings next week?\"During the session, the S&P 500 healthcare sector hit a fresh record high while industrials were the biggest gainers.American Airlines Group Inc and Southwest Airlines Co    reported smaller-than-expected quarterly losses, signaling a revival in travel demand. Both shares fell.Investors welcomed data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April.The speedy U.S. vaccination rollout has improved the economic outlook as people plan summer vacations and leisure spending, but a surge in COVID-19 cases in India and elsewhere in Asia has kept investors anxious, Hayes said.Equities have likely reached a near-term top as expectations are too high, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.\"There's going to be continued positive moves throughout the remainder of the year but we are due for some sort of a pullback in the very short term,\" he said. \"Then the dip buyers will step back in.\"First-quarter earnings are expected to increase 31.9% from a year ago, the highest rate since the fourth quarter, according to IBES Refinitiv data.All 11 S&P 500 sectors closed lower as Microsoft, Apple Inc , Amazon.com Inc and Tesla Inc weighted the most on the downdraft.The Dow Jones Industrial Average fell 0.94% to 33,815.9, the S&P 500 lost 0.92% at 4,134.98, and the Nasdaq Composite dropped 0.94% to 13,818.41.Volume on U.S. exchanges was 10.35 billion shares, compared with the 10.32 billion full-session average over the last 20 trading days.Chipmaker Intel Corp forecast second-quarter revenue above Wall Street targets, betting its next generation of processors for data centers and PCs will meet growing demand for cloud-based services. Shares slipped about 1% in after-hours trade.AT&T Inc beat Wall Street revenue targets as the U.S. economic reopening following pandemic-linked restrictions boosted smartphone sales and the media business. AT&T shares rose 4.2%.Biogen Inc beat quarterly profit estimates on stronger-than-expected sales for its muscle wasting disorder drug, though concerns over its reliance on its yet-to-be approved Alzheimer's therapy, aducanumab, weighed on shares. Biogen shares fell 4.0%.Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.The S&P 500 posted 84 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 20 new lows. (Reporting by Herbert Lash, additional reporting by Lewis Krauskopf in New York, Shivani Kumaresan and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Richard Chang)","news_type":1},"isVote":1,"tweetType":1,"viewCount":346,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":103137514,"gmtCreate":1619754786338,"gmtModify":1704271911028,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Up, up and away","listText":"Up, up and away","text":"Up, up and away","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/103137514","repostId":"1153490597","repostType":4,"repost":{"id":"1153490597","pubTimestamp":1619741154,"share":"https://ttm.financial/m/news/1153490597?lang=&edition=fundamental","pubTime":"2021-04-30 08:05","market":"us","language":"en","title":"S&P 500 notches record close after strong earnings from Facebook and Apple","url":"https://stock-news.laohu8.com/highlight/detail?id=1153490597","media":"CNBC","summary":"The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up 239.98 points, or 0.7%, at 34,060.36. The S&P 500 advanced just under 0.7% to finish the day at 4,211.47, a new closing high.The tech-heavy Nasdaq Composite, which began the day up 1%, underperformed with a gain of just over 0.2% to end the session at 14,082.55.Apple, which reported earnings yester","content":"<div>\n<p>The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P 500 notches record close after strong earnings from Facebook and Apple</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P 500 notches record close after strong earnings from Facebook and Apple\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-30 08:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TWTR":"Twitter","AAPL":"苹果",".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.cnbc.com/2021/04/28/stock-market-futures-open-to-close-news.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1153490597","content_text":"The S&P 500 closed at record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.The Dow Jones Industrial Average ended the day up 239.98 points, or 0.7%, at 34,060.36. The S&P 500 advanced just under 0.7% to finish the day at 4,211.47, a new closing high.The tech-heavy Nasdaq Composite, which began the day up 1%, underperformed with a gain of just over 0.2% to end the session at 14,082.55.Apple, which reported earnings yesterday afternoon, said that sales jumped 54% during the quarter, with each product category seeing double-digit growth. The company also said it would increase its dividend by 7%, and authorized $90 billion in share buybacks. Still, Apple shares ended the day just under the flatline.“The primary market trend remains positive,” said Keith Lerner, chief market strategist at Truist. “But we expect a choppier environment as tensions are set to persist between better economic growth and earnings prospects versus the potential for higher taxes and rising interest rates as the economy normalizes,” he added.Thursday marks President Joe Biden’s 100th day in office. On Wednesday evening, he made his first address to a joint session of Congress where he pushed his so-far popular agenda, which includes a $2 trillion infrastructure plan as well as a freshly unveiled, $1.8 trillion plan for families, children and students.Thursday is also the busiest day of the quarterly earnings season, with roughly 11% of the S&P 500 slated to provide quarterly updates.McDonald’s published its results before the opening bell and told investors that its sales have finally topped pre-pandemic levels. The Dow component also raised its outlook for systemwide sales growth. The stock added 1.2% at the close.Caterpillar, which also reported on Thursday, lost 2% while Merck dropped 4.4% following disappointing results. Amazon issued its first-quarter results shortlyafter market close. The e-commerce giant surpassed analysts’ expectations on earnings and revenue.Gilead Sciences, Twitter, U.S. Steel and Western Digital will also post results after the bell.Facebook’s revenue jumped 48%, driven by higher-priced ads, sending its stock up 7.3% and to a record. Qualcomm shares added 4.4% after reporting a 52% jump in revenue.Economic data released Thursday gave investors an update on the progress of the economic recovery.First-quarter GDP hit an annualized rate of 6.4%, according to a report published by the Bureau of Economic Analysis, a sign that the U.S. economy began 2021 with an accelerationof commercial activity. Outside of the reopening-fueled third-quarter surge last year, it was the best period for GDP since the third quarter of 2003.The Labor Department, meanwhile, reported that initial jobless claims last week totaled 553,000, just above the 528,000 estimate issued by Dow Jones.The Federal Reserve said Wednesday that it would hold interest rates near zero. The S&P slid from its high after Federal Reserve Chairman Jerome Powell said during a press conference following the Federal Open Market Committee’s decision that there are some signs of froth in the market.“Rates remain unchanged for now and, despite improving economic data, taper talk remained off the table at today’s Federal Reserve meeting,” said Bethany Payne, portfolio manager at Janus Henderson.“As vaccination rates accelerate, employment strengthens, and expansive fiscal policy adds further support to household and business incomes, investors are now looking for signs of whether the central bank safety net could be withdrawn sooner than expected,” she added.Big Tech earningsAmazon sales surge 44% as it smashes earnings expectationsNio Reports Q1 Beat Amid Strong Demand, Forecasts Deliveries Growth Despite Chip ShortagesTwitter stock plunges on user miss and low guidanceWestern Digital's quarterly results and outlook topped Wall Street estimatesGilead Sciences Q1 Earnings Beat EstimatesWireless-Chip Maker Skyworks Squeaks By Second-Quarter TargetsDexCom Surpasses Q1 Earnings and Revenue EstimatesUnited States Steel Q1 Earnings Surpass Estimates","news_type":1},"isVote":1,"tweetType":1,"viewCount":114,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":109920760,"gmtCreate":1619659907650,"gmtModify":1704727541682,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Way to go!!!&nbsp;","listText":"Way to go!!!&nbsp;","text":"Way to go!!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/109920760","repostId":"1137964402","repostType":4,"repost":{"id":"1137964402","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1619651546,"share":"https://ttm.financial/m/news/1137964402?lang=&edition=fundamental","pubTime":"2021-04-29 07:12","market":"us","language":"en","title":"Apple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks","url":"https://stock-news.laohu8.com/highlight/detail?id=1137964402","media":"Tiger Newspress","summary":"Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple did not issue official guidance for what it expects in the quarter ending in June.Apple authorized $90 billion in share buybacks.Apple stock rose over 4% at one point in extended trading.Apple reported double-digit growth in every single one of its product categories, and its most important product line, the iPhone, was up 65","content":"<p><b>KEY POINTS</b></p><ul><li>Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</li><li>Apple did not issue official guidance for what it expects in the quarter ending in June.</li><li>Apple authorized $90 billion in share buybacks.</li></ul><p>Apple&nbsp;reported&nbsp;a blowout quarter&nbsp;on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</p><p>Apple stock rose over 4% at one point in extended trading.</p><p><img src=\"https://static.tigerbbs.com/4e791f63f460807906f1793c2d58933e\" tg-width=\"1302\" tg-height=\"833\"></p><p>Apple reported double-digit growth in every single one of its product categories, and its&nbsp;most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales&nbsp;did&nbsp;better, with its computers up 70.1% and iPad&nbsp;sales&nbsp;growing nearly 79% on an annual basis.</p><p>Apple said it would increase its dividend by 7%&nbsp;to $0.22 per share&nbsp;and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay&nbsp;and 2019′s $75 billion.</p><p>Here’s how Apple did versus Refinitiv estimates:</p><ul><li><b>EPS</b>:&nbsp;$1.40&nbsp;vs. $0.99 estimated</li><li><b>Revenue</b>:&nbsp;$89.58&nbsp;billion&nbsp;vs. $77.36&nbsp;billion&nbsp;estimated, up 53.7% year-over-year</li><li><b>iPhone revenue</b>:&nbsp;$47.94 billion&nbsp;vs. $41.43&nbsp;billion&nbsp;estimated, up&nbsp;65.5% year-over-year</li><li><b>Services revenue</b>:&nbsp;$16.90 billion&nbsp;vs. $15.57&nbsp;billion&nbsp;estimated, up 26.7% year over&nbsp;year</li><li><b>Other Products revenue</b>:&nbsp;$7.83&nbsp;billion&nbsp;vs. $7.79&nbsp;billion&nbsp;estimated,&nbsp;up 24%&nbsp;year-over-year</li><li><b>Mac revenue</b>:&nbsp;$9.10&nbsp;billion&nbsp;vs. $6.86&nbsp;billion&nbsp;estimated, up 70.1% year-over-year</li><li><b>iPad revenue</b>:&nbsp;$7.80 billion&nbsp;vs. $5.58&nbsp;billion&nbsp;estimated, up 78.9% year-over-year</li><li><b>Gross margin</b>:&nbsp;42.5% vs. 39.8%&nbsp;estimated</li></ul><p>Apple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue&nbsp;guidance since the start of the pandemic, citing uncertainty.&nbsp;This is Apple’s second quarter in a row with double-digit growth in all product categories.&nbsp;Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.</p><p>Apple has said in the past months that its business has been boosted by the pandemic as consumers&nbsp;and businesses&nbsp;bought&nbsp;computers&nbsp;to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies&nbsp;open up.</p><p>Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this&nbsp;moment in their own lives, as well as the optimism consumers seem to feel about better days&nbsp;ahead for all of us.”</p><p>Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac&nbsp;laptops&nbsp;that used its own M1 chips&nbsp;for longer battery life, instead of processors sold by&nbsp;Intel.&nbsp;iPad sales were up&nbsp;nearly 79% year-over-year.</p><p>Neither of those&nbsp;results&nbsp;include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.</p><p>“We’re seeing strong first-time buyers on the Mac&nbsp;…&nbsp;it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that&nbsp;…&nbsp;it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”</p><p>Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.</p><p>In greater China, which includes the mainland, Hong Kong, and Taiwan,&nbsp;Apple’s revenue increased over&nbsp;87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic.&nbsp;Every other geographical category, including the Americas and Europe, were also up on an annual basis.</p><p><img src=\"https://static.tigerbbs.com/37a8b45c92174e3c9ab224d9a85f5e2d\" tg-width=\"1910\" tg-height=\"1114\" referrerpolicy=\"no-referrer\"></p><p>Apple’s&nbsp;high-margin&nbsp;services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.</p><p>One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.</p><p>“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.</p><p>However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.</p><p>“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.</p><p>Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Apple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nApple reports another blowout quarter with sales up 54%, authorizes $90 billion in share buybacks\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-04-29 07:12</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p><b>KEY POINTS</b></p><ul><li>Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</li><li>Apple did not issue official guidance for what it expects in the quarter ending in June.</li><li>Apple authorized $90 billion in share buybacks.</li></ul><p>Apple&nbsp;reported&nbsp;a blowout quarter&nbsp;on Wednesday, announcing companywide sales up 54% higher than last year, and&nbsp;significantly stronger profits than Wall Street expected.</p><p>Apple stock rose over 4% at one point in extended trading.</p><p><img src=\"https://static.tigerbbs.com/4e791f63f460807906f1793c2d58933e\" tg-width=\"1302\" tg-height=\"833\"></p><p>Apple reported double-digit growth in every single one of its product categories, and its&nbsp;most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales&nbsp;did&nbsp;better, with its computers up 70.1% and iPad&nbsp;sales&nbsp;growing nearly 79% on an annual basis.</p><p>Apple said it would increase its dividend by 7%&nbsp;to $0.22 per share&nbsp;and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay&nbsp;and 2019′s $75 billion.</p><p>Here’s how Apple did versus Refinitiv estimates:</p><ul><li><b>EPS</b>:&nbsp;$1.40&nbsp;vs. $0.99 estimated</li><li><b>Revenue</b>:&nbsp;$89.58&nbsp;billion&nbsp;vs. $77.36&nbsp;billion&nbsp;estimated, up 53.7% year-over-year</li><li><b>iPhone revenue</b>:&nbsp;$47.94 billion&nbsp;vs. $41.43&nbsp;billion&nbsp;estimated, up&nbsp;65.5% year-over-year</li><li><b>Services revenue</b>:&nbsp;$16.90 billion&nbsp;vs. $15.57&nbsp;billion&nbsp;estimated, up 26.7% year over&nbsp;year</li><li><b>Other Products revenue</b>:&nbsp;$7.83&nbsp;billion&nbsp;vs. $7.79&nbsp;billion&nbsp;estimated,&nbsp;up 24%&nbsp;year-over-year</li><li><b>Mac revenue</b>:&nbsp;$9.10&nbsp;billion&nbsp;vs. $6.86&nbsp;billion&nbsp;estimated, up 70.1% year-over-year</li><li><b>iPad revenue</b>:&nbsp;$7.80 billion&nbsp;vs. $5.58&nbsp;billion&nbsp;estimated, up 78.9% year-over-year</li><li><b>Gross margin</b>:&nbsp;42.5% vs. 39.8%&nbsp;estimated</li></ul><p>Apple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue&nbsp;guidance since the start of the pandemic, citing uncertainty.&nbsp;This is Apple’s second quarter in a row with double-digit growth in all product categories.&nbsp;Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.</p><p>Apple has said in the past months that its business has been boosted by the pandemic as consumers&nbsp;and businesses&nbsp;bought&nbsp;computers&nbsp;to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies&nbsp;open up.</p><p>Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this&nbsp;moment in their own lives, as well as the optimism consumers seem to feel about better days&nbsp;ahead for all of us.”</p><p>Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac&nbsp;laptops&nbsp;that used its own M1 chips&nbsp;for longer battery life, instead of processors sold by&nbsp;Intel.&nbsp;iPad sales were up&nbsp;nearly 79% year-over-year.</p><p>Neither of those&nbsp;results&nbsp;include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.</p><p>“We’re seeing strong first-time buyers on the Mac&nbsp;…&nbsp;it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that&nbsp;…&nbsp;it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”</p><p>Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.</p><p>In greater China, which includes the mainland, Hong Kong, and Taiwan,&nbsp;Apple’s revenue increased over&nbsp;87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic.&nbsp;Every other geographical category, including the Americas and Europe, were also up on an annual basis.</p><p><img src=\"https://static.tigerbbs.com/37a8b45c92174e3c9ab224d9a85f5e2d\" tg-width=\"1910\" tg-height=\"1114\" referrerpolicy=\"no-referrer\"></p><p>Apple’s&nbsp;high-margin&nbsp;services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.</p><p>One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.</p><p>“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.</p><p>However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.</p><p>“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.</p><p>Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137964402","content_text":"KEY POINTSApple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple did not issue official guidance for what it expects in the quarter ending in June.Apple authorized $90 billion in share buybacks.Apple reported a blowout quarter on Wednesday, announcing companywide sales up 54% higher than last year, and significantly stronger profits than Wall Street expected.Apple stock rose over 4% at one point in extended trading.Apple reported double-digit growth in every single one of its product categories, and its most important product line, the iPhone, was up 65.5% from last year. Its Mac and iPad sales did better, with its computers up 70.1% and iPad sales growing nearly 79% on an annual basis.Apple said it would increase its dividend by 7% to $0.22 per share and authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion outlay and 2019′s $75 billion.Here’s how Apple did versus Refinitiv estimates:EPS: $1.40 vs. $0.99 estimatedRevenue: $89.58 billion vs. $77.36 billion estimated, up 53.7% year-over-yeariPhone revenue: $47.94 billion vs. $41.43 billion estimated, up 65.5% year-over-yearServices revenue: $16.90 billion vs. $15.57 billion estimated, up 26.7% year over yearOther Products revenue: $7.83 billion vs. $7.79 billion estimated, up 24% year-over-yearMac revenue: $9.10 billion vs. $6.86 billion estimated, up 70.1% year-over-yeariPad revenue: $7.80 billion vs. $5.58 billion estimated, up 78.9% year-over-yearGross margin: 42.5% vs. 39.8% estimatedApple did not issue official guidance for what it expects in the quarter ending in June. It hasn’t provided revenue guidance since the start of the pandemic, citing uncertainty. This is Apple’s second quarter in a row with double-digit growth in all product categories. Apple CFO Luca Maestri told analysts that the company expects June quarter revenue to rise by double digits year-over-year, although it faces some supply shortages due to the worldwide chip shortage.Apple has said in the past months that its business has been boosted by the pandemic as consumers and businesses bought computers to work and entertain themselves while at home. But Apple’s strong results in the quarter suggest that the trend may persist as more economies open up.Or, as Apple CEO Tim Cook said in a statement: “This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us.”Mac sales were up 70%, and Cook said that the result was “fueled by” the company’s introduction of its Mac laptops that used its own M1 chips for longer battery life, instead of processors sold by Intel. iPad sales were up nearly 79% year-over-year.Neither of those results include iPad Pro or iMac models the company announced in March, which are expected to drive additional demand.“We’re seeing strong first-time buyers on the Mac … it continues to run just south of 50%,” Cook told CNBC’s Josh Lipton. “And, in China, it’s even higher than that … it’s more around two-thirds. And that speaks to people preferring to work on the Mac.”Apple’s iPhone also reported strong results this quarter, quelling fears that the current annual cycle could slow down. Last year, Apple released iPhones with a new exterior design and 5G support, which many investors believed could prompt a major upgrade cycle, which this quarter’s results indicate.In greater China, which includes the mainland, Hong Kong, and Taiwan, Apple’s revenue increased over 87% year-over-year to $17.73 billion, although the comparison is to a quarter last year in which China was largely shut down in the early days of the pandemic. Every other geographical category, including the Americas and Europe, were also up on an annual basis.Apple’s high-margin services business, including iCloud, App Store, and subscriptions like Apple Music, also showed 26.7% growth.One metric that Apple uses to show the growth in services is the number of subscriptions it has, which not only include its own subscriptions like Apple One, but also subscriptions through its App Store.“We now have over 660 million paid subscriptions across the services on the platform, and that’s up 40 million from the previous quarter, which is an acceleration from 35 million,” Cook told CNBC.However, Apple’s App Store has been challenged by lawmakers and companies that say it costs too much and has too much power. A closely-watched trial with Fortnite maker Epic Games over App Store policies kicks off next week.“The App Store has been an economic miracle. Last year, the estimates are that there was over a half a trillion dollars of economic activity because of the store. And, so, this has been just an economic gamechanger for not only the United States, but several countries around the world. And, we’re going to go in and tell our story. And we’ll see where it goes. But, we’re confident,” Cook told CNBC.Apple’s gross margin was also unusually elevated for the company. Most quarters, it tends to be in the 38% to 39% range, but in the quarter ending in March, Apple reported 42.5% margins.","news_type":1},"isVote":1,"tweetType":1,"viewCount":156,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":377404404,"gmtCreate":1619541736508,"gmtModify":1704725715013,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Hold position for now","listText":"Hold position for now","text":"Hold position for now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/377404404","repostId":"1123159959","repostType":4,"repost":{"id":"1123159959","pubTimestamp":1619534712,"share":"https://ttm.financial/m/news/1123159959?lang=&edition=fundamental","pubTime":"2021-04-27 22:45","market":"hk","language":"en","title":"Ant Group's fast-tracked IPO prompts Chinese probe","url":"https://stock-news.laohu8.com/highlight/detail?id=1123159959","media":"seekingalpha","summary":"The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant","content":"<p>The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA)&nbsp;planned IPO&nbsp;dual listing latelast year.</p>\n<p>Wall Street Journal sourcessay the ongoing probe is looking into the regulators who approved the listing, local officials who promoted the listing, and the large state firms that would financially benefit from the offering.</p>\n<p>The government pulled Ant Group's blockbuster debut at the last minute, citing concerns about the company's lacking regulatory scrutiny. The move came after Ant Group founder and former Alibaba chairman Jack Ma publicly criticized regulators.</p>\n<p>The probe continues to cloud Ant's future IPO plans despite the company working on concessions, which reportedly include restructuring into a financial holding company and Jack Ma stepping backfrom the company.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ant Group's fast-tracked IPO prompts Chinese probe</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAnt Group's fast-tracked IPO prompts Chinese probe\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-27 22:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA) planned IPO dual listing latelast year.\nWall Street Journal sourcessay the ...</p>\n\n<a href=\"https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://seekingalpha.com/news/3686139-ant-groups-fast-tracked-ipo-prompts-chinese-probe","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1123159959","content_text":"The Chinese government is reportedly investigating the speedy path to approval for fintech giant Ant Group's(NYSE:BABA) planned IPO dual listing latelast year.\nWall Street Journal sourcessay the ongoing probe is looking into the regulators who approved the listing, local officials who promoted the listing, and the large state firms that would financially benefit from the offering.\nThe government pulled Ant Group's blockbuster debut at the last minute, citing concerns about the company's lacking regulatory scrutiny. The move came after Ant Group founder and former Alibaba chairman Jack Ma publicly criticized regulators.\nThe probe continues to cloud Ant's future IPO plans despite the company working on concessions, which reportedly include restructuring into a financial holding company and Jack Ma stepping backfrom the company.","news_type":1},"isVote":1,"tweetType":1,"viewCount":134,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":106132474,"gmtCreate":1620092375598,"gmtModify":1704338518280,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Why???&nbsp;","listText":"Why???&nbsp;","text":"Why???","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/106132474","repostId":"1147234999","repostType":4,"repost":{"id":"1147234999","pubTimestamp":1620086355,"share":"https://ttm.financial/m/news/1147234999?lang=&edition=fundamental","pubTime":"2021-05-04 07:59","market":"us","language":"en","title":"Bill Gates and Melinda Gates are splitting up after 27 years","url":"https://stock-news.laohu8.com/highlight/detail?id=1147234999","media":"CNBC","summary":"Bill and Melinda Gates met at $Microsoft$, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts.Financial implications are not immediately clear.Bill Gates, co-founder and former CEO ofMicrosoft, and his wife, Melinda French Gates, said on $Twitter$ on Monday that they will split up after 27 years. The two will keep working together on philanthropic efforts, which have addressed education, gender equalit","content":"<div>\n<p>KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts....</p>\n\n<a href=\"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bill Gates and Melinda Gates are splitting up after 27 years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBill Gates and Melinda Gates are splitting up after 27 years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-04 07:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts....</p>\n\n<a href=\"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"MSFT":"微软"},"source_url":"https://www.cnbc.com/2021/05/03/bill-gates-and-melinda-gates-are-splitting-up.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1147234999","content_text":"KEY POINTSBill and Melinda Gates met at Microsoft, and the two got married in 1994.The couple, who agreed to give away more than half their wealth, will keep working together on charitable efforts.Financial implications are not immediately clear.Bill Gates, co-founder and former CEO ofMicrosoft, and his wife, Melinda French Gates, said on Twitter on Monday that they will split up after 27 years. The two will keep working together on philanthropic efforts, which have addressed education, gender equality and health care.\"After a great deal of thought and a lot of work on our relationship, we have made the decision to end our marriage,\" Bill and Melinda Gates wrote in a statement that Bill Gatestweeted out.“Over the last 27 years, we have raised three incredible children and built a foundation that works all over the world to enable all people to lead healthy, productive lives. We continue to share a belief in that mission and will continue our work together at the foundation, but we no longer believe we can grow together as a couple in this next phase of our lives. We ask for space and privacy for our family as we begin to navigate this new life.”The decision reflects a personal change at the top of American business.Bill Gates led Microsoft as CEO from its founding with Paul Allen in 1975 until 2000, leaving Steve Ballmer to run the company, while Bill Gates became chairman and chief software architect. In 2008 Gatesgave up his day-to-day roleat the company to spend more time on the nonprofit Bill and Melinda Gates Foundation.Last year Bill Gatesstepped downfrom Microsoft’s board asthe coronavirusbecame a force around the world. He began spending more time on the foundation alongside Melinda Gates. The two are co-chairs and trustees of the foundation, which launched in 2000.Bill and Melinda Gates both worked at Microsoft. She had been a general manager at the software company, where she worked on products such as the Encarta encyclopedia, according to herLinkedIn profile. The two met at a dinner for Microsoft employees in 1987. “It took him quite a few months before he asked me out,” Melinda Gateslater said. Bill Gates hadweighed the pros and cons on a blackboard, and in 1994 the couple were married in Hawaii.Financial details of the Gateses parting ways are not yet clear. Bill Gates owns 1.37% of Microsoft’s outstanding shares, which are worth more than $26 billion, according to FactSet. The couple were creators, along with Warren Buffett, of theGiving Pledge, a program that requires participants to give away more than half of their wealth.At one point the couple decided to move $20 billion worth of Microsoft stock to the foundation as they sought to increase their commitment to philanthropy, Bill Gates wrote in a 2019blog post. Today the foundation has more than $51 billion in assets, according to a tax filing, making itone of the world’s wealthiest foundations.“In the case of Melinda, it is a truly equal partner,” Bill Gates said in the 2019 Netflix documentary “Inside Bill’s Brain.” “She’s a lot like me in that she is optimistic and she is interested in science. She is better with people than I am. She’s a tiny bit less hardcore about knowing, you know, immunology, than I am.”In 2015 the two began pursuing areas they were interested in. Bill Gates established Breakthrough Energy, an initiative to slow climate change that includes a venture arm, and Melinda Gates created Pivotal Ventures, a company that makes investments to foster equality.For Valentine’s Day in 2020, Bill Gates posted a photoon Instagramshowing him standing with his arm around Melinda Gates. “I couldn’t ask for a better partner on this journey,” the caption said.Each year for more than a decade the Gateses have published a letter about their foundation work. In thelatest one, published in January, they reflected on the impact of the pandemic, beyond supporting the development of vaccines. “For us, the days became a blur of video meetings, troubling news alerts, and microwaved meals,” they wrote.Bill Gates is the world’s fourth richest person, behindAmazon’sJeff Bezos, LVMH’s Bernard Arnault and Tesla’s Elon Musk, according toForbes.The announcement comes two years after Bezos said he and his wife, MacKenzie, weregetting divorced. Bill Gates and Jeff Bezos are among the world’s richest people, and Amazon and Microsoft compete in the cloud computing business. Amazon said earlier this year that Bezos would be stepping down from his post as CEO and that cloud chief Andy Jassywould succeed him.","news_type":1},"isVote":1,"tweetType":1,"viewCount":287,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":108615953,"gmtCreate":1620017962672,"gmtModify":1704337455239,"author":{"id":"3581575451331302","authorId":"3581575451331302","authorIdStr":"3581575451331302","name":"sjuy3","avatar":"https://static.tigerbbs.com/b063c0ea636eecacbfadababf41e3341","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3581575451331302"},"themes":[],"htmlText":"Is it good time to buy now?&nbsp;","listText":"Is it good time to buy now?&nbsp;","text":"Is it good time to buy now?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/108615953","repostId":"1121605010","repostType":4,"repost":{"id":"1121605010","pubTimestamp":1620014543,"share":"https://ttm.financial/m/news/1121605010?lang=&edition=fundamental","pubTime":"2021-05-03 12:02","market":"hk","language":"en","title":"4 Reasons Baidu Could Make You Rich","url":"https://stock-news.laohu8.com/highlight/detail?id=1121605010","media":"seekingalpha","summary":"Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P","content":"<p><b>Summary</b></p>\n<ul>\n <li>Strong corporate earnings and great economic data keeps the market grinding higher. The S&amp;P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.</li>\n <li>Fortunately, whatever your goals, yield, value, growth, or total returns, something great is always on sale if you know where to look.</li>\n <li>Baidu is the Google of China, and planning on increasing spending by 30% annually over the coming years, focusing on AI, driverless cars, and streaming.</li>\n <li>In recent weeks it plunged 40%, partially due to forced hedge fund margin call selling. This creates a potentially exceptional opportunity to be \"greedy when others are fearful\" about this speculative hyper-growth blue-chip.</li>\n <li>I recently bought a starter position in Baidu, because it's 31% undervalued and analysts think it could double in the next three years, and almost triple over the next five. For anyone comfortable with the complex risk profile of Chinese tech giants, Baidu is one of the most reasonable and prudent hyper-growth blue-chips you can buy today.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fce5597f98f5e2431c73edea32173192\" tg-width=\"1536\" tg-height=\"693\"><span>Photo by DNY59/iStock via Getty Images</span></p>\n<p>Over seven years as an analyst I've studied the greatest investors in history, to see what strategies made them legends.</p>\n<p><b>Greatest Investors In History: Masters Of Financial Science</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Name</b></td>\n   <td><b>Returns</b></td>\n   <td><b>Time Horizon</b></td>\n   <td><p><b>Most Famous For</b></p></td>\n  </tr>\n  <tr>\n   <td>Jim Simmons (Co-Founder Renaissance Technologies)</td>\n   <td>71.8% CAGR</td>\n   <td>1994 to 2014 (best investing record ever recorded)</td>\n   <td><p>Pure Quant Based Investing</p></td>\n  </tr>\n  <tr>\n   <td>Joel Greenblatt</td>\n   <td>40% CAGR</td>\n   <td>21 years at Gotham Capital</td>\n   <td><p><b>\"Above-Average Quality Companies At Below-Average Prices\"</b></p></td>\n  </tr>\n  <tr>\n   <td>Peter Lynch</td>\n   <td>29.2% CAGR at Fidelity's Magellan Fund</td>\n   <td>1977 to 1990 (13 years)</td>\n   <td><p><b>\"Growth At A Reasonable Price\"</b></p></td>\n  </tr>\n  <tr>\n   <td>Bill Miller (Legg Mason Value Trust 1990 to 2006)</td>\n   <td>22.8% CAGR and beat the S&amp;P 500 for 15 consecutive years</td>\n   <td>16 years</td>\n  </tr>\n  <tr>\n   <td>Warren Buffett</td>\n   <td>20.8% CAGR at Berkshire</td>\n   <td>55 Years</td>\n   <td><p><b>Greedy when others are fearful</b></p></td>\n  </tr>\n  <tr>\n   <td>Benjamin Graham</td>\n   <td>20% CAGR vs 12% S&amp;P 500</td>\n   <td>1934 to 1956 (22 years)</td>\n   <td><b>Margin of Safety</b></td>\n  </tr>\n  <tr>\n   <td>Edward Thorp</td>\n   <td>20+% CAGR</td>\n   <td>over 30 years</td>\n   <td><p>invented card counting,<b>pure statistically-based investing</b></p></td>\n  </tr>\n  <tr>\n   <td>Charlie Munger</td>\n   <td>19.80%</td>\n   <td>1962 to 1975</td>\n   <td><p><b>Wonderful companies at fair prices</b></p></td>\n  </tr>\n  <tr>\n   <td>Howard Marks</td>\n   <td>19% CAGR</td>\n   <td>Since 1995</td>\n   <td><p><b>Valuation Mean Reversion</b></p></td>\n  </tr>\n  <tr>\n   <td>Anne Scheiber</td>\n   <td>18.3% CAGR</td>\n   <td>50 years</td>\n   <td><p>Turned $5K into $22 million with no formal training, purely with<b>tax-efficient buy and hold blue-chip investing</b>.</p></td>\n  </tr>\n  <tr>\n   <td>John Templeton</td>\n   <td>300% from 1939 to 1943, 15.8% CAGR from 1954 to 1992</td>\n   <td>38 years</td>\n   <td>Market Cycles</td>\n  </tr>\n  <tr>\n   <td>Carl Icahn</td>\n   <td>14.6% CAGR vs 5.6% S&amp;P 500</td>\n   <td><p>2001 to 2016 (15 Years)</p></td>\n  </tr>\n  <tr>\n   <td>David Swenson</td>\n   <td>13.9% CAGR at Yale's Endowment (includes bonds and alternative assets) vs 10.7% S&amp;P 500</td>\n   <td>30 years</td>\n   <td><p>Alternative Asset Allocation</p></td>\n  </tr>\n  <tr>\n   <td>Geraldine Weiss</td>\n   <td>11.2% vs 9.8% S&amp;P 500</td>\n   <td>37 years</td>\n   <td><p><b>Best risk-adjusted track record</b>of any newsletter over 30 years according to Hubbert Financial Digest, popularized<b>dividend yield theory</b>(the only strategy she employed)</p></td>\n  </tr>\n </tbody>\n</table>\n<p>Combining these lessons, along with decades of market studies from leading research institutions and blue-chip analyst firms, I've determined that there are six fundamentals that over the long term will make you rich (assuming you have discretionary savings to invest of course).</p>\n<ul>\n <li>Portfolio risk-management</li>\n <li>safety</li>\n <li>quality</li>\n <li>yield</li>\n <li>growth</li>\n <li>and value</li>\n</ul>\n<p>When combined with patience, time, and discipline, these are what made the greatest investors in history the legends they are today.</p>\n<p>You and I may never match the returns of the legends, but if we practice disciplined financial science we can avoid costly mistakes, and focus on the highest probability/low-risk blue-chips.</p>\n<blockquote>\n It's remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.\" - Charlie Munger\n</blockquote>\n<p>These are the \"consistently not stupid\" decisions that made Charlie Munger and Warren Buffett so successful.</p>\n<p>Today I want to explain why I've recently opened a starter tracking position in speculative hyper-growth blue-chip Baidu (BIDU).</p>\n<p><img src=\"https://static.tigerbbs.com/d78b7d254783a9f8afc60962aa7d03ee\" tg-width=\"640\" tg-height=\"390\"></p>\n<p>All Chinese tech giants are suffering a bear market right now. But notice how Baidu recently fell 40% in a matter of weeks.</p>\n<blockquote>\n Baidu was also held by now-infamous hedge fund Archegos Capital Management at that time, which blew up during the same week. When the highly levered Archegos was unable to meet a margin call, banks seized Archegos' assets, including Baidu, and sold them off in massive blocks, accelerating Baidu's plunge.\" -Motley Fool\n</blockquote>\n<p>Institutional forced selling is one of the best opportunities for prudent long-term investors to buy the world's highest quality companies at mouth-watering prices.</p>\n<p><img src=\"https://static.tigerbbs.com/e09c272fe0a5f7a5052ea3021630d643\" tg-width=\"640\" tg-height=\"390\"></p>\n<p>Lowe's (LOW) and Realty Income (O) both plunged 25% on March 16th, due to institutional forced selling.</p>\n<p>In other words, when hedge funds get margin calls, they become the ultimate dumb money. Taking the other side of those trades can be the way to earn Buffett-like returns, through buying and holding blue-chip investing.</p>\n<p>So let me explain the four reasons why I consider it time to get greedy when others are fearful on Baidu.</p>\n<blockquote>\n Today I buy what others won't, so tomorrow I earn returns others can't.\"\n</blockquote>\n<blockquote>\n  - Paraphrase of Jerry Rice\n</blockquote>\n<p><b>Reason 1: A Speculative Blue-Chip Quality Company</b></p>\n<p>According to the 2017 study<i>Do Stocks Outperform Treasury Bills?</i>by Hendrik Bessembinder of Arizona State University's W.P. Carey School of Business 52% of all stocks, lose money over time.</p>\n<p>This study looked at 26,000 companies from 1926 to 2016 and found that about 12% went to zero.</p>\n<p><img src=\"https://static.tigerbbs.com/a6f826f65373ae3a2e4061f906c54bb2\" tg-width=\"640\" tg-height=\"508\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5868a6e0418dbe8596b0c667120b3a53\" tg-width=\"640\" tg-height=\"440\"><span>(Source: Bessembinder et al)</span></p>\n<p>From 1926 to 2016 over 3,000 US companies listed on US exchanges went bankrupt. 1,100 or about 4%, delivered 100% of net positive returns. Just 48% of stocks delivered positive returns.</p>\n<p>In other words, safety and quality are what can help you avoid the value traps that don't make any money or lose all of your savings.</p>\n<p>The Dividend Kings quality scores factor in 143 fundamental metrics covering</p>\n<ul>\n <li>dividend safety</li>\n <li>balance sheet strength</li>\n <li>short and long-term bankruptcy risk</li>\n <li>accounting and corporate fraud risk</li>\n <li>profitability and business model</li>\n <li>cost of capital</li>\n <li>long-term sustainability (ESG scores and trends from MSCI, Morningstar, and Reuters'/Refinitiv)</li>\n <li>management quality</li>\n <li>dividend friendly corporate culture/income dependability</li>\n <li>long-term total returns (a Ben Graham sign of quality)</li>\n</ul>\n<p>Our model actually includes over 1,000 metrics if you count everything factored in by eight rating agencies we use to assess fundamental risk.</p>\n<p>Every metric was selected based on</p>\n<ul>\n <li>decades of empirical data</li>\n <li>the experience of the greatest investors in history</li>\n <li>eight rating agencies</li>\n <li>and what blue-chip economists and analyst firms consider most closely correlated to a company's long-term success.</li>\n</ul>\n<p>Baidu's quality is 9/12 speculative blue-chip, meaning I recommend a 2.5% max risk cap position sizing.</p>\n<p><b>Dividend Kings Quality Rating System</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Quality Score</b></td>\n   <td><b>Meaning</b></td>\n   <td><b>Max Invested Capital Risk Recommendation</b></td>\n   <td><b>Margin Of Safety Potentially Good Buy</b></td>\n   <td><b>Strong Buy</b></td>\n   <td><b>Very Strong Buy</b></td>\n   <td><p><b>Ultra-Value Buy</b></p></td>\n  </tr>\n  <tr>\n   <td>3</td>\n   <td>Terrible, Very High Long-Term Bankruptcy Risk</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>4</td>\n   <td>Very Poor</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>Poor</td>\n   <td>0%</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td>NA (avoid)</td>\n   <td><p>NA (avoid)</p></td>\n  </tr>\n  <tr>\n   <td>6</td>\n   <td>Below-Average, Fallen Angels (very speculative)</td>\n   <td>1%</td>\n   <td>45%</td>\n   <td>55%</td>\n   <td>65%</td>\n   <td>75%</td>\n  </tr>\n  <tr>\n   <td>7</td>\n   <td>Average (Relative to S&amp;P 500)</td>\n   <td>2.5%</td>\n   <td>35%</td>\n   <td>45%</td>\n   <td>55%</td>\n   <td>65%</td>\n  </tr>\n  <tr>\n   <td>8</td>\n   <td>Above-Average</td>\n   <td>5% (unless speculative then 2.5%)</td>\n   <td>25% to 30%</td>\n   <td>35% to 40%</td>\n   <td>45% to 50%</td>\n   <td><p>55% to 60%</p></td>\n  </tr>\n  <tr>\n   <td><b>9</b></td>\n   <td><b>Blue-Chip</b></td>\n   <td>7% (unless<b>speculative</b>then<b>2.5%</b>)</td>\n   <td>20% to<b>25%</b></td>\n   <td>30% to<b>35%</b></td>\n   <td>40% to<b>45%</b></td>\n   <td><p>50% to<b>55%</b></p></td>\n  </tr>\n  <tr>\n   <td>10</td>\n   <td>SWAN (a higher caliber of Blue-Chip)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>15% to 20%</td>\n   <td>25% to 30%</td>\n   <td>35% to 40%</td>\n   <td><p>45% to 50%</p></td>\n  </tr>\n  <tr>\n   <td>11</td>\n   <td>Super SWAN (exceptionally dependable blue-chips)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>10% to 15%</td>\n   <td>20% to 25%</td>\n   <td>30% to 35%</td>\n   <td><p>40% to 45%</p></td>\n  </tr>\n  <tr>\n   <td>12</td>\n   <td>Ultra SWAN (as close to perfect companies as exist)</td>\n   <td>7% (unless speculative then 2.5%)</td>\n   <td>5% to 10%</td>\n   <td>15% to 20%</td>\n   <td>25% to 30%</td>\n   <td><p>35% to 40%</p></td>\n  </tr>\n </tbody>\n</table>\n<p>What exactly makes Baidu a speculative blue-chip?</p>\n<p><b>Balance Sheet Safety</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating</b></td>\n   <td><b>Dividend Kings Safety Score (75 Safety Metric Model)</b></td>\n   <td><b>Approximate Dividend Cut Risk (Average Recession)</b></td>\n   <td><p><b>Approximate Dividend Cut Risk In Pandemic Level Recession</b></p></td>\n  </tr>\n  <tr>\n   <td>1 (very unsafe)</td>\n   <td>0% to 20%</td>\n   <td>over 4%</td>\n   <td>16+%</td>\n  </tr>\n  <tr>\n   <td>2 (unsafe average)</td>\n   <td>21% to 40%</td>\n   <td>over 2%</td>\n   <td>8% to 16%</td>\n  </tr>\n  <tr>\n   <td>3 (average)</td>\n   <td>41% to 60%</td>\n   <td>2%</td>\n   <td>4% to 8%</td>\n  </tr>\n  <tr>\n   <td><b>4 (safe)</b></td>\n   <td><b>61% to 80%</b></td>\n   <td><b>1%</b></td>\n   <td><b>2% to 4%</b></td>\n  </tr>\n  <tr>\n   <td>5 (very safe)</td>\n   <td>81% to 100%</td>\n   <td>0.5%</td>\n   <td>1% to 2%</td>\n  </tr>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>76%</b></td>\n   <td><b>A stable rating from Fitch, A3 (A- equivalent) stable rating Moody's</b></td>\n   <td><b>0.66% to 2.5% 30-year default/bankruptcy risk</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Long-Term Dependability</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Company</b></td>\n   <td><b>DK Long-Term Dependability Score</b></td>\n   <td><b>Interpretation</b></td>\n   <td><b>Points</b></td>\n  </tr>\n  <tr>\n   <td>S&amp;P 500/Industry Average</td>\n   <td>58%</td>\n   <td>Average Dependability</td>\n   <td>2</td>\n  </tr>\n  <tr>\n   <td>Non-Dependable Companies</td>\n   <td>31% or below</td>\n   <td>Poor Dependability</td>\n   <td>1</td>\n  </tr>\n  <tr>\n   <td>Relatively Dependable Companies</td>\n   <td>32% to 70%</td>\n   <td>Below to Above-Average Dependability</td>\n   <td>2</td>\n  </tr>\n  <tr>\n   <td>Very Dependable Companies</td>\n   <td>71% to 80%</td>\n   <td>Very Dependable</td>\n   <td>3</td>\n  </tr>\n  <tr>\n   <td>Exceptionally Dependable Companies</td>\n   <td>81% or higher</td>\n   <td>Exceptional Dependability</td>\n   <td>4</td>\n  </tr>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>67%</b></td>\n   <td><b>Above-Average Dependability</b></td>\n   <td><b>2</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Overall Quality</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>BIDU</b></td>\n   <td><b>Final Score</b></td>\n   <td><b>Rating</b></td>\n  </tr>\n  <tr>\n   <td>Safety</td>\n   <td>76%</td>\n   <td>4/5</td>\n  </tr>\n  <tr>\n   <td>Business Model</td>\n   <td>80%</td>\n   <td>3/3</td>\n  </tr>\n  <tr>\n   <td>Dependability</td>\n   <td>67%</td>\n   <td>2/4</td>\n  </tr>\n  <tr>\n   <td><b>Total</b></td>\n   <td><b>73%</b></td>\n   <td><b>9/12 Speculative Blue-Chip</b></td>\n  </tr>\n </tbody>\n</table>\n<p><b>Baidu is the 245th Highest Quality Master List Company (Out of 495) = 49th Percentile</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/927ef17638b4bbf9db4e34f1aeb01a61\" tg-width=\"640\" tg-height=\"241\"><span>(Source: DK Safety &amp; Quality Tool) updated at the end of each day, sorted by overall quality score</span></p>\n<ul>\n <li>green = potentially good buy or better</li>\n <li>blue = potentially reasonable buy</li>\n <li>yellow = hold</li>\n <li>red = potential trim/sell</li>\n</ul>\n<p>BIDU's 73% quality score means it's the 245th highest quality company on the DK 500 Master List. This list includes the world's highest quality companies including</p>\n<ul>\n <li>all dividend champions</li>\n <li>all dividend aristocrats</li>\n <li>all dividend kings</li>\n <li>all 12/12 Ultra SWANs (as close to perfect quality as exists on Wall Street, think wide moat aristocrats)</li>\n <li>numerous global aristocrats (such as BTI, ENB, and NVS)</li>\n</ul>\n<p>BIDU is about average quality compared to the world's elite companies and similar in quality to such 9/12 blue-chips and, 10/12 SWANs, as</p>\n<ul>\n <li>Qualcomm (QCOM)</li>\n <li>Becton, Dickinson and Company (BDX) - dividend aristocrat</li>\n <li>W. P. Carey (WPC)</li>\n <li>Sonoco Products (SON) - dividend champion</li>\n <li>H.B. Fuller (FUL) - dividend king</li>\n <li>MetLife (MET)</li>\n <li>Digital Realty Trust (DLR)</li>\n <li>Leggett &amp; Platt (LEG) - dividend aristocrat</li>\n <li>V.F. Corp (VFC) - dividend aristocrat</li>\n <li>Bank of New York Mellon (BK)</li>\n</ul>\n<p>Baidu has a strong cash-rich balance sheet, though it is taking on extra leverage in order to fund its ambitious growth efforts.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d4c7bc8d9da039967a0ce9e435f7b6eb\" tg-width=\"449\" tg-height=\"462\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Including leasing expenses, BIDU has 2X as much cash as debt.</p>\n<p>Fitch and Moody's rate Baidu A stable and A3 (A- equivalent) stable outlooks, indicating 0.66% to 2.5% 30-year default/bankruptcy risk.</p>\n<p>Analysts expect much higher spending in the short-term to cause leverage to increase, though rating agencies don't expect this to be permanent.</p>\n<p>The key safety ratios with Baidu are the F, Z, and M scores, advanced accounting ratios created by leading research institutions that use asset ratios scanned from quarterly filings.</p>\n<ul>\n <li>F-score measures short-term bankruptcy risk</li>\n <li>Z-score measures 2-year bankruptcy risk (with 84% to 92% historical accuracy)</li>\n <li>M-score measures accounting fraud risk (with 76% historical accuracy)</li>\n</ul>\n<p>7/9 is very safe on the F-score = very low short-term bankruptcy risk.</p>\n<p>3.59 vs 3+ very safe and 9.51 historical, confirms the A-credit ratings and low long-term risk of losing all your money.</p>\n<p>And the M-score of -2.42 indicates a significantly less than 17.5% probability that Baidu is cooking its books.</p>\n<p><img src=\"https://static.tigerbbs.com/0593cdfc392caf38a9d7ca42c482c359\" tg-width=\"640\" tg-height=\"245\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6110ac3a73c5c935e0778da21e6eb62e\" tg-width=\"640\" tg-height=\"297\"><span>(Source: Gurufocus)</span></p>\n<p>BIDU's historically unsafe M-score has been improving and became safe at the end of 2014 and has remained so for the last seven years.</p>\n<ul>\n <li>its safety and quality score still get dinged though because we factor in every important metric so we don't miss any warning signs</li>\n</ul>\n<p>The M-score is 76% historically accurate at catching accounting fraud and 82.5% accurate at finding companies with honest accounting.</p>\n<p>Combined with its credit ratings and risk ratings from 5 different rating agencies, plus its auditors, I can say with relatively high confidence that Baidu is not the next Luckin Coffee.</p>\n<p>Quality is a proven alpha factor, one of seven that beats the market over the long term.</p>\n<p><img src=\"https://static.tigerbbs.com/d4868372d29cef8d5b07fc5a538fb58e\" tg-width=\"640\" tg-height=\"273\"></p>\n<p>On Wall Street, profitability over time is the most accurate proxy for quality.</p>\n<ul>\n <li>credit ratings are one of the best qualitative quality proxies</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b0c8a6a2913d554a5c9780f869d7a887\" tg-width=\"445\" tg-height=\"430\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Baidu's profitability is historically in the top 20% of its peers, confirming a wide and stable moat.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>Industry Percentile</b></td>\n   <td><b>Major Interactive Media Companies More Profitable Than BIDU (Out of 543)</b></td>\n  </tr>\n  <tr>\n   <td>Operating Margin</td>\n   <td>67.35</td>\n   <td>177</td>\n  </tr>\n  <tr>\n   <td>Net Margin</td>\n   <td>81.26</td>\n   <td>102</td>\n  </tr>\n  <tr>\n   <td>Return On Equity</td>\n   <td>67.86</td>\n   <td>175</td>\n  </tr>\n  <tr>\n   <td>Return On Assets</td>\n   <td>68.47</td>\n   <td>171</td>\n  </tr>\n  <tr>\n   <td>Return On Capital</td>\n   <td>69.61</td>\n   <td>165</td>\n  </tr>\n  <tr>\n   <td><b>Average</b></td>\n   <td><b>70.91</b></td>\n   <td><b>158</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: Gurufocus Premium)</i></p>\n<p>Over the last year, increased growth spending has reduced profitability to the top 29% of peers, though that's expected to recover in the future.</p>\n<ul>\n <li>for example, returns on equity are expected to rise 10% by 2024</li>\n</ul>\n<p>Joel Greenblatt defined quality by return on capital, his gold standard proxy for quality and moatiness.</p>\n<ul>\n <li>operating income (EBIT)/operating capital (the money it takes to run the business for a year)</li>\n</ul>\n<p>Greenblatt's entire legendary track record, 40% annual returns for 21 years, was done by combining high ROC with low valuations.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a5d43fa9d5032a24362f75054f2a9e93\" tg-width=\"640\" tg-height=\"292\"><span>(Source: Gurufocus Premium)</span></p>\n<p>Even with heavy growth spending in recent years, Baidu's returns on capital are very impressive.</p>\n<p>The average Master List company has 88% ROC.</p>\n<p>The average aristocrat 83%.</p>\n<p>The average Ultra SWAN 87%.</p>\n<p>Over the past year, BIDU's ROC has been 103% and in Q4 it was 95%.</p>\n<p>Analysts expect that in the next few years, ROC will revert back to its historical 205%.</p>\n<p>A level of profitability that, according to Joel Greenblatt, would make BIDU one of the highest quality companies in the world.</p>\n<p>Baidu's future growth is expected to come from aggressive investments into driverless cars (long-term) and AI and streaming in the short and medium term.</p>\n<p><b>Baidu Growth Spending Consensus Forecast</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>SG&amp;A</b></td>\n   <td><b>R&amp;D</b></td>\n   <td><b>Capex</b></td>\n   <td><b>Total Growth Spending</b></td>\n   <td><b>Sales</b></td>\n   <td><p><b>Growth Spending/Sales</b></p></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>$2,792</td>\n   <td>$3,016</td>\n   <td>$993</td>\n   <td>$4,009</td>\n   <td>$16,548</td>\n   <td>24.23%</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>$3,574</td>\n   <td>$3,554</td>\n   <td>$1,893</td>\n   <td>$5,447</td>\n   <td>$19,517</td>\n   <td>27.91%</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>$3,974</td>\n   <td>$4,062</td>\n   <td>$2,220</td>\n   <td>$6,282</td>\n   <td>$22,235</td>\n   <td>28.25%</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>$5,049</td>\n   <td>$5,858</td>\n   <td>$2,719</td>\n   <td>$8,577</td>\n   <td>$25,258</td>\n   <td>33.96%</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>$1,504</td>\n   <td>NA</td>\n   <td>$30,071</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>2025</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>2026</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>21.83%</b></td>\n   <td><b>24.77%</b></td>\n   <td><b>10.94%</b></td>\n   <td><b>28.85%</b></td>\n   <td><b>16.10%</b></td>\n   <td><b>NA</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Historically Baidu spends about 17% of its revenue on growth. By 2023 that's expected to double.</p>\n<p>Total growth spending is expected to grow at almost 30% annually for the next three years.</p>\n<p>Baidu Consensus Profit Forecast</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>Sales</b></td>\n   <td><b>FCF</b></td>\n   <td><b>EBITDA</b></td>\n   <td><b>EBIT (Operating Income)</b></td>\n   <td><b>Net Income</b></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>$16,548</td>\n   <td>$2,106</td>\n   <td>$4,251</td>\n   <td>$2,216</td>\n   <td>$3,473</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>$19,517</td>\n   <td>$3,947</td>\n   <td>$4,734</td>\n   <td>$2,629</td>\n   <td>$2,760</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>$22,235</td>\n   <td>$5,013</td>\n   <td>$5,812</td>\n   <td>$3,400</td>\n   <td>$3,381</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>$25,258</td>\n   <td>$5,854</td>\n   <td>$6,730</td>\n   <td>$4,163</td>\n   <td>$4,226</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>$30,071</td>\n   <td>$7,421</td>\n   <td>NA</td>\n   <td>$6,195</td>\n   <td>$5,268</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>16.10%</b></td>\n   <td><b>37.01%</b></td>\n   <td><b>16.55%</b></td>\n   <td><b>29.31%</b></td>\n   <td><b>10.98%</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Management's guidance, which is the basis for these consensus forecasts, is for strong revenue growth. Net margins are expected to compress but cash flows are expected to soar.</p>\n<p>Free cash flow, the ultimate source of all intrinsic value according to Ben Graham and Warren Buffett, is expected to more than triple by 2024.</p>\n<p>Baidu Consensus Margin Forecast</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Year</b></td>\n   <td><b>FCF Margin</b></td>\n   <td><b>EBITDA Margin</b></td>\n   <td><b>EBIT (Operating) Margin</b></td>\n   <td><b>Net Margin</b></td>\n  </tr>\n  <tr>\n   <td>2020</td>\n   <td>12.7%</td>\n   <td>25.7%</td>\n   <td>13.4%</td>\n   <td>21.0%</td>\n  </tr>\n  <tr>\n   <td>2021</td>\n   <td>20.2%</td>\n   <td>24.3%</td>\n   <td>13.5%</td>\n   <td>14.1%</td>\n  </tr>\n  <tr>\n   <td>2022</td>\n   <td>22.5%</td>\n   <td>26.1%</td>\n   <td>15.3%</td>\n   <td>15.2%</td>\n  </tr>\n  <tr>\n   <td>2023</td>\n   <td>23.2%</td>\n   <td>26.6%</td>\n   <td>16.5%</td>\n   <td>16.7%</td>\n  </tr>\n  <tr>\n   <td>2024</td>\n   <td>24.7%</td>\n   <td>NA</td>\n   <td>20.6%</td>\n   <td>17.5%</td>\n  </tr>\n  <tr>\n   <td><b>Annualized Growth</b></td>\n   <td><b>18.01%</b></td>\n   <td><b>1.23%</b></td>\n   <td><b>11.37%</b></td>\n   <td><b>-4.42%</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: FactSet Research Terminal)</i></p>\n<p>Baidu's profitability is ultimately expected to improve, though net margins won't until its major growth initiatives are over.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ee8691866fef56c1dd17062657e10811\" tg-width=\"640\" tg-height=\"320\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU ended 2020 with $5.6 billion in cash, and that's expected to rise to $22 billion by 2023, and potentially nearly $60 billion by 2024.</p>\n<p>That may not be as impressive as some tech companies ($601 billion by 2026 for Amazon), but it does mean that Baidu's war chest and financial flexibility to pivot towards AI, driverless cars, and streaming will grow significantly in future years.</p>\n<p>Baidu Medium-Term Growth Consensus</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>2020 Actual Growth</b></td>\n   <td><b>2021 consensus growth</b></td>\n   <td><b>2022 consensus growth</b></td>\n   <td><p><b>2023 consensus growth</b></p></td>\n  </tr>\n  <tr>\n   <td>EPS</td>\n   <td>31%</td>\n   <td>7%</td>\n   <td>18%</td>\n   <td>16%</td>\n  </tr>\n  <tr>\n   <td>Owner Earnings (Buffett smoothed out FCF)</td>\n   <td>124%</td>\n   <td>22%</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>Operating Cash Flow</td>\n   <td>-14%</td>\n   <td>59%</td>\n   <td>31%</td>\n   <td>7%</td>\n  </tr>\n  <tr>\n   <td>Free cash flow</td>\n   <td>96%</td>\n   <td>85%</td>\n   <td>22%</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>EBITDA</td>\n   <td>-18%</td>\n   <td>53%</td>\n   <td>27%</td>\n   <td>24%</td>\n  </tr>\n  <tr>\n   <td>EBIT (operating income)</td>\n   <td>130%</td>\n   <td>26%</td>\n   <td>26%</td>\n   <td>19%</td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: F.A.S.T. Graphs, FactSet Research)</i></p>\n<p>In the next few years, Baidu's growth efforts are expected to result in strong growth. But what's attracted me to the Google of China, is that this hyper-growth is expected to continue for many years to come.</p>\n<p><b>Reason 2: Long-Term Hyper-Growth Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/bdfa536609dc32efe57d7af85154ddbf\" tg-width=\"640\" tg-height=\"412\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU's AI, streaming, and driverless car investments are showing up in \"other services\" and that revenue is expected to grow almost 50% in 3 years.</p>\n<p><img src=\"https://static.tigerbbs.com/d0a582df968d9cfaf4a09f2f2984f522\" tg-width=\"640\" tg-height=\"373\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/72ab775d253a2fbce4a1a5001922e0b8\" tg-width=\"640\" tg-height=\"394\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<ul>\n <li>16.0% to 17.5% long-term growth consensus range</li>\n <li>6% to 28% growth consensus range adjusted for historical margin of error</li>\n</ul>\n<p><img src=\"https://static.tigerbbs.com/6ae4ef54819e7f58c95b2f21ced20393\" tg-width=\"640\" tg-height=\"336\"><img src=\"https://static.tigerbbs.com/705d5218e7d882c4c52948d4f47fbb5e\" tg-width=\"640\" tg-height=\"341\"></p>\n<p>The margins of error on BIDU forecasts are very wide. 33% of the time it grows much faster than expected, 33% of the time much slower, and 33% of the about as fast as expected.</p>\n<ul>\n <li>margins of error over the last decade (excluding outliers) are 60% to the downside, 55% to the upside</li>\n <li>the long-term growth consensus range: 16% to 18% CAGR</li>\n <li>the margin of error adjusted long-term analyst growth consensus range: 6% to 28% CAGR</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/73c38a8847c12ffd67928559c978ff18\" tg-width=\"640\" tg-height=\"407\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>BIDU's historical growth is from -9% to 52%. So relatively high growth uncertainty, more so than most tech blue-chips.</p>\n<ul>\n <li>and thus the $650 investment vs $10K in GOOG, $89K in BABA, and $200K in Amazon</li>\n</ul>\n<p>However, analysts expect growth to be similar to the 20% growth of the last decade.</p>\n<p>And at today's high margin of safety, we're likely getting a good deal to compensate for BIDU's growth uncertainty and complex risk profile.</p>\n<p><b>Reason 3: Highly Attractive Valuation</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f3ad1e7e41458b1bdc4f379d7917692\" tg-width=\"640\" tg-height=\"414\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>BIDU growing at the rates analysts expect in the future has historically been valued at 23X to 26X earnings.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fbd2ab20e70f34f53bc7768feb9b6a24\" tg-width=\"640\" tg-height=\"334\"><span>(Source: FactSet Research Terminal)</span></p>\n<p>BIDU is currently trading at 20.4X forward earnings and 13.6X EV/EBITDA.</p>\n<p>EV/EBITDA is market cap + net debt/EBITDA and is Joel Greenblatt's and private equity's favorite valuation metric.</p>\n<p>Baidu's 13-year median EV/EBITDA is 23.2, and its trading at 13.6, implying a potential 42% discount to fair value.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Metric</b></td>\n   <td><b>Historical Fair Value (12-years)</b></td>\n   <td><b>2020</b></td>\n   <td><b>2021</b></td>\n   <td><b>2022</b></td>\n   <td><b>2023</b></td>\n  </tr>\n  <tr>\n   <td>Earnings</td>\n   <td>25.0</td>\n   <td>$243.87</td>\n   <td>$261.27</td>\n   <td>$307.91</td>\n   <td>$357.77</td>\n  </tr>\n  <tr>\n   <td>Owner Earnings (Buffett smoothed out FCF) - 10 yr</td>\n   <td>23.5</td>\n   <td>$324.46</td>\n   <td>$394.46</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>Operating Cash Flow</td>\n   <td>19.9</td>\n   <td>$202.33</td>\n   <td>$321.22</td>\n   <td>$420.37</td>\n   <td>$448.64</td>\n  </tr>\n  <tr>\n   <td>Free Cash Flow (11-yr)</td>\n   <td>27.5</td>\n   <td>$220.77</td>\n   <td>$408.53</td>\n   <td>$497.28</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td>EBITDA</td>\n   <td>22.0</td>\n   <td>$190.60</td>\n   <td>$291.18</td>\n   <td>$370.80</td>\n   <td>$459.36</td>\n  </tr>\n  <tr>\n   <td>EBIT (operating income)</td>\n   <td>34.5</td>\n   <td>$207.78</td>\n   <td>$261.14</td>\n   <td>$328.78</td>\n   <td>$392.83</td>\n  </tr>\n  <tr>\n   <td><b>Average</b></td>\n   <td><b>$224.60</b></td>\n   <td><b>$312.71</b></td>\n   <td><b>$373.81</b></td>\n   <td><b>$410.40</b></td>\n  </tr>\n  <tr>\n   <td>Current Price</td>\n   <td>$215.83</td>\n  </tr>\n  <tr>\n   <td><p><b>Discount To Fair Value</b></p></td>\n   <td><b>3.91%</b></td>\n   <td><b>30.98%</b></td>\n   <td><b>42.26%</b></td>\n   <td><b>47.41%</b></td>\n  </tr>\n  <tr>\n   <td><i><b>Upside To Fair Value</b></i></td>\n   <td><i><b>4%</b></i></td>\n   <td><i><b>45%</b></i></td>\n   <td><i><b>73%</b></i></td>\n   <td><i><b>90%</b></i></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Source: F.A.S.T. Graphs, FactSet Research)</i></p>\n<p>BIDU is about 31% historically undervalued right now, meaning that if it grows as expected through 2023 and returns to fair value that's 90% upside potential.</p>\n<ul>\n <li>$350 is the median 12-month price target</li>\n <li>65% upside potential over the next 12 months according to analysts</li>\n</ul>\n<p>And that guestimate is 100% justified by fundamentals.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating</b></td>\n   <td><b>Margin Of Safety For Speculative 9/12 Blue-Chip Quality Companies</b></td>\n   <td><b>2020 Price</b></td>\n   <td><b>2021 Price</b></td>\n   <td><b>2022 Price</b></td>\n  </tr>\n  <tr>\n   <td>Potentially Reasonable Buy</td>\n   <td>0%</td>\n   <td>$224.60</td>\n   <td>$312.71</td>\n   <td>$373.81</td>\n  </tr>\n  <tr>\n   <td><b>Potentially Good Buy</b></td>\n   <td><b>25%</b></td>\n   <td><b>$168.45</b></td>\n   <td><b>$234.53</b></td>\n   <td><b>$280.35</b></td>\n  </tr>\n  <tr>\n   <td>Potentially Strong Buy</td>\n   <td>35%</td>\n   <td>$145.99</td>\n   <td>$203.26</td>\n   <td>$242.97</td>\n  </tr>\n  <tr>\n   <td>Potentially Very Strong Buy</td>\n   <td>45%</td>\n   <td>$123.53</td>\n   <td>$171.99</td>\n   <td>$205.59</td>\n  </tr>\n  <tr>\n   <td>Potentially Ultra-Value Buy</td>\n   <td>55%</td>\n   <td>$101.07</td>\n   <td>$140.72</td>\n   <td>$168.21</td>\n  </tr>\n  <tr>\n   <td><b>Currently</b></td>\n   <td><b>$213.41</b></td>\n   <td><b>5%</b></td>\n   <td><b>32%</b></td>\n   <td><b>43%</b></td>\n  </tr>\n  <tr>\n   <td><p>Upside To Fair Value (Not Including Dividends)</p></td>\n   <td>5%</td>\n   <td>47%</td>\n   <td>75%</td>\n  </tr>\n </tbody>\n</table>\n<p>At a 32% margin of safety, Baidu, despite all its risks, is a potentially good buy for more risk-tolerant investors.</p>\n<p>But the ability to potentially enjoy monster short-term gains is just the cherry on top with Baidu.</p>\n<p><b>Reason 4: Eye-Popping Long-Term Return Potential</b></p>\n<p>Here is a reasonable idea of what kind of returns you can expect buying BIDU today.</p>\n<p><b>Baidu 2023 Consensus Return Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/15f5606b2eaa042608497f68998a69cc\" tg-width=\"640\" tg-height=\"385\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>If BAIDU grows as analysts expect through 2023, and returns to historical fair value, then analysts expect</p>\n<ul>\n <li>75% total returns</li>\n <li>23.3% CAGR returns</li>\n <li>vs -1.3% CAGR S&amp;P 500</li>\n</ul>\n<p>From its 31% discount, BIDU has the potential to outperform the 36% overvalued S&amp;P 500 by 78% over the next three years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7be8ed919f810734d99f50b4b14741dd\" tg-width=\"640\" tg-height=\"405\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>Corporate earnings growth estimates are rising by the day. Yet the market has already priced in three years of earnings growth totaling 62% or 17.4% CAGR.</p>\n<p>Over the long term, BIDU's return outlook is also very strong.</p>\n<p><b>Baidu 2026 Consensus Return Potential</b></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d9aef71a5e564b122341a52dec05bb34\" tg-width=\"640\" tg-height=\"405\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>If BIDU grows as analysts expect through 2026 and returns to historical fair value you could expect</p>\n<ul>\n <li>179% total returns</li>\n <li>19.8% CAGR</li>\n <li>vs 4.5% CAGR S&amp;P 500</li>\n <li><i><b>4.4X better than the market's consensus return potential</b></i></li>\n</ul>\n<p>If BIDU delivers as analysts expect, then buying today could almost triple your money in the next five years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/935c135e000c240df768640b47826e5c\" tg-width=\"640\" tg-height=\"453\"><span>(Source: F.A.S.T. Graphs, FactSet Research)</span></p>\n<p>Over the long term, analysts expect</p>\n<ul>\n <li>0% yield + 17.5% growth = 17.5% CAGR very long-term total returns (after valuation changes cancel out)</li>\n <li>6% to 28% CAGR range</li>\n <li>vs 7.8% for the S&amp;P and 10.8% for the dividend aristocrats</li>\n</ul>\n<p><b>Baidu Total Returns Since 2006</b></p>\n<p><img src=\"https://static.tigerbbs.com/cfe7969e52431f689a9737c4c48401e1\" tg-width=\"640\" tg-height=\"124\"><img src=\"https://static.tigerbbs.com/08f72f9d45d8f32d950ea367c84cb531\" tg-width=\"640\" tg-height=\"297\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/40bd03cb49698c42f76664151bd05cf5\" tg-width=\"640\" tg-height=\"298\"><span>(Source: Portfolio Visualizer)</span></p>\n<p>In the last 15 years, BIDU has turned $1 into $26, adjusted for inflation, and crushed the market with 8X more wealth compounding.</p>\n<p>It's expected to grow slightly slower than in the past, but the ability to potentially enjoy 17.5% hyper-growth for many years is incredibly attractive.</p>\n<p><b>Baidu Vs S&amp;P 500 Vs Dividend Aristocrat Inflation-Adjusted Total Return Forecast: $650 Initial Investment</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Time Frame (Years)</b></td>\n   <td><b>5.8% LT Inflation-Adjusted Returns (S&amp;P Consensus)</b></td>\n   <td><b>8.8% Inflation-Adjusted Returns (aristocrat consensus)</b></td>\n   <td><b>15.5% Inflation-Adjusted Returns (BIDU consensus)</b></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>$1,325.65</td>\n   <td>$1,524.56</td>\n   <td>$1,336.05</td>\n  </tr>\n  <tr>\n   <td><b>10</b></td>\n   <td><b>$1,757.34</b></td>\n   <td><b>$2,324.28</b></td>\n   <td><b>$2,746.21</b></td>\n  </tr>\n  <tr>\n   <td>15</td>\n   <td>$2,329.62</td>\n   <td>$3,543.51</td>\n   <td>$5,644.73</td>\n  </tr>\n  <tr>\n   <td>20</td>\n   <td>$3,088.26</td>\n   <td>$5,402.29</td>\n   <td>$11,602.54</td>\n  </tr>\n  <tr>\n   <td>25</td>\n   <td>$4,093.94</td>\n   <td>$8,236.11</td>\n   <td>$23,848.60</td>\n  </tr>\n  <tr>\n   <td><b>30</b></td>\n   <td><b>$5,427.13</b></td>\n   <td><b>$12,556.45</b></td>\n   <td><b>$49,019.95</b></td>\n  </tr>\n  <tr>\n   <td>35</td>\n   <td>$7,194.46</td>\n   <td>$19,143.06</td>\n   <td>$100,758.76</td>\n  </tr>\n  <tr>\n   <td>40</td>\n   <td>$9,537.33</td>\n   <td>$29,184.74</td>\n   <td>$207,106.02</td>\n  </tr>\n  <tr>\n   <td>45</td>\n   <td>$12,643.14</td>\n   <td>$44,493.88</td>\n   <td>$425,699.02</td>\n  </tr>\n  <tr>\n   <td><b>50</b></td>\n   <td><b>$16,760.36</b></td>\n   <td><b>$67,833.58</b></td>\n   <td><b>$875,009.10</b></td>\n  </tr>\n </tbody>\n</table>\n<p>The ability to grow 2X to 3X as fast as the S&amp;P 500 or aristocrats creates the potential for wealth compounding on a massive scale. Look at how large my $650 initial BIDU investment can grow, assuming analysts are right and management delivers the expected growth over time.</p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Time Frame (Years)</b></td>\n   <td><b>Ratio S&amp;P vs Aristocrat Consensus</b></td>\n   <td><b>Ratio S&amp;P vs BIDU consensus</b></td>\n  </tr>\n  <tr>\n   <td>5</td>\n   <td>1.15</td>\n   <td>1.01</td>\n  </tr>\n  <tr>\n   <td><b>10</b></td>\n   <td><b>1.32</b></td>\n   <td><b>1.56</b></td>\n  </tr>\n  <tr>\n   <td>15</td>\n   <td>1.52</td>\n   <td>2.42</td>\n  </tr>\n  <tr>\n   <td>20</td>\n   <td>1.75</td>\n   <td>3.76</td>\n  </tr>\n  <tr>\n   <td>25</td>\n   <td>2.01</td>\n   <td>5.83</td>\n  </tr>\n  <tr>\n   <td><b>30</b></td>\n   <td><b>2.31</b></td>\n   <td><b>9.03</b></td>\n  </tr>\n  <tr>\n   <td>35</td>\n   <td>2.66</td>\n   <td>14.01</td>\n  </tr>\n  <tr>\n   <td>40</td>\n   <td>3.06</td>\n   <td>21.72</td>\n  </tr>\n  <tr>\n   <td>45</td>\n   <td>3.52</td>\n   <td>33.67</td>\n  </tr>\n  <tr>\n   <td><b>50</b></td>\n   <td><b>4.05</b></td>\n   <td><b>52.21</b></td>\n  </tr>\n </tbody>\n</table>\n<p>Over the long term, the aristocrats are expected to quadruple the S&amp;P 500's wealth compounding. Baidu could potentially deliver 52X as much wealth as the S&amp;P 500.</p>\n<p>Is Baidu likely to grow 17.5% for 50 years? Probably not. But even if it can deliver just 10 to 20 years of hyper-growth, when combined with its attractive current valuation, that's worthy of a small initial investment in my book.</p>\n<p><b>Risk Profile: Why Baidu Isn't Right For Everyone</b></p>\n<p>There are no risk-free companies and no company is right for everyone. You have to be comfortable with the fundamental risk profile.</p>\n<p><b>Fundamental Risk Summary</b></p>\n<blockquote>\n We think Baidu faces high levels of risk, given intense competition along with questions as to whether its AI-related investment will generate satisfactory returns.\n</blockquote>\n<blockquote>\n Though Baidu is the largest search engine in China, it is competing with the other two Internet giants, Tencent and Alibaba, and Google’s potential return to the Chinese search market is also a threat.\n</blockquote>\n<blockquote>\n Regarding the search engine business, Tencent invested in Sogou, and Alibaba acquired UC Web, which owns a mobile search engine, Shenma. Competition has extended to each key area of mobile Internet usage, such as navigation, O2O services, online video services, and so on. Baidu’s margins have been significantly dragged down by aggressive spending in video content and O2O marketing but recovered to 18.5% in 2017 from 14.2% in 2016 as Baidu divested margin-dilutive businesses.\n</blockquote>\n<blockquote>\n The major Internet companies in China have been investing in AI-related business, such as cloud computing, voice and image recognition, and autonomously driven cars. At the current stage,\n <b>it is difficult to predict whether Baidu will be the final winner in AI and whether the returns will reward its investment.</b>\n</blockquote>\n<blockquote>\n In addition, regulatory risk is a concern. Following the Wei Zexi incident in early 2016, Chinese authorities launched new regulations for online search and advertising, which clearly defined paid search results as advertising. These regulations took effect on Sept. 1, 2016. Given stricter standards for online advertisers, Baidu’s online marketing services revenue growth declined to 1% in 2016. If the local authorities release more policies regarding Internet business, such as online advertising and online finance, Baidu’s revenue could be negatively affected.\n</blockquote>\n<blockquote>\n Since 2017, Baidu has discontinued the disclosure of MAUs for its mobile search and mobile maps, which is possibly due to weaker numbers.\" - Morningstar\n</blockquote>\n<p>BIDU's pivot into the technology of the future is potentially like Satya Nadella taking MSFT into the pure cloud-driven strategy.</p>\n<p>Or it could be like IBM's Watson-based flaying, major promise but poor execution over time.</p>\n<blockquote>\n Baidu has the urgency to strengthen its mobile business because it has not developed another industry-leading business other than its mobile search app for years.\n</blockquote>\n<blockquote>\n Baidu’s share of mobile time spend reduced to 6.9% in March 2019 from 7.3% year over year. Baidu positions its flagship Baidu app (173 million daily average users in March 2019) as a \"super\" app that can serve a wide range of users' needs, such as reading, watching videos, shopping, transportation tickets, food services, and so on, but we believe the app is less of a super app compared with Tencent’s Wechat (1.1 billion monthly average users).\n</blockquote>\n<blockquote>\n It has copied the strategies of its peers by launching a mini-program (181 million MAU in March 2019) and short video apps (sevenfold year over year increase to 98 million MAU in March 2019 as per Questmobile).\" - Morningstar\n</blockquote>\n<p>Baidu has struggled more than most Chinese tech giants to pivot and adapt to the disruption risk that is ever-present in this industry.</p>\n<blockquote>\n We have not factored in the meaningful commercialization of Baidu’s AI-based services, such as voice assistant platform DuerOS, autonomous driving platform Apollo and artificial intelligence cloud services.\n</blockquote>\n<blockquote>\n <b>Search is driven by an artificial intelligence-powered algorithm, giving Baidu a good foundation in this segment.</b>Baidu is also\n <b>one of the largest and earliest companies to start AI investments in China.</b>Currently, Baidu uses AI to recommend feeds to the app’s users to generate advertising revenue.\n</blockquote>\n<blockquote>\n IQiyi, Baidu’s online video platform, has been a key growth driver stemming from increasing willingness to pay for premium content in China and continuous advertising demand on&nbsp;\n <b>iQiyi. It accounted for 29% of Baidu’s revenue in the first quarter of 2019.</b>\n</blockquote>\n<blockquote>\n In the near term, Baidu will invest heavily in its mobile business in terms of sales and marketing, and traffic acquisition. While meaningful monetization is uncertain, we expect Baidu to increase or maintain its research and development expenditure, which is at 17% of sales in the first quarter of 2019. To fend off major competitor Tencent Video, iQiyi needs to continue to invest in premium content. Therefore, we expect Baidu’s margins to be under pressure in the near term.\" - Morningstar\n</blockquote>\n<p>But while Baidu has made some questionable investments over the years, its current focus on AI is a logical and prudent one.</p>\n<p>Baidu's competitive advantage in AI stems from being the first mover in Chinese search. It has the most data to feed into its machine learning algorithms, though rivals like Alibaba (BABA) and Tencent (OTCPK:TCEHY) are working hard to eat its lunch.</p>\n<blockquote>\n Baidu generated 68% of its revenue during the year from its online marketing services segment, which mainly sells ads. The segment's revenue has declined year over year for&nbsp;seven straight quarters.\n</blockquote>\n<blockquote>\n That ongoing slowdown is troubling since Baidu's advertising rivals -- like&nbsp;\n <b>Tencent</b>&nbsp;and&nbsp;\n <b>Bilibili --</b>both expanded&nbsp;their advertising businesses over the past year. It also indicates people are spending less time on traditional online searches and more time on other digital platforms.\" - Leo Sun,Motley Fool\n</blockquote>\n<p>In recent years, BIDU's market share in digital ads has been declining, which means unlike companies like JD, BABA, and TCEHY, it's attempting to pivot from a position of weakness, not strength.</p>\n<p>It has the resources to invest heavily and hopefully achieve the kinds of impressive growth rates analysts expect. But success is far from guaranteed.</p>\n<p>This is why I've bought a starter 3 share tracking position in Baidu.</p>\n<ul>\n <li>compared to a $10,000 position in Alphabet (GOOG)</li>\n <li>and an&nbsp;$89,000 investment into Alibaba</li>\n <li>and a&nbsp;$200,000 investment into Amazon(AMZN)</li>\n</ul>\n<p>And of course, we can't forget about the risks surrounding management and governance.</p>\n<blockquote>\n Robin Yanhong Li, the founder of Baidu, has been the chairman of the board since its inception and has served as the CEO since 2004. Before that, Li worked at IDD Information Services and Infoseek in Silicon Valley, with a special focus on product development in Internet search engines. Li owned 16.4% of the company as of January 2020, and all directors and management together owned 16.5%. Jennifer Xinzhe Li stepped down as CFO in 2017 and was replaced by Herman Yu, formerly of Weibo...\n</blockquote>\n<blockquote>\n Baidu had reputational issues, with the Wei Zexi medical incident being the largest scandal, which led to a management restructuring in 2016. Three vice presidents were dismissed. Qi Lu joined Baidu in January 2017 as group president and COO but resigned in June 2018. Lu has a solid record in the U.S. technology industry, and Baidu’s financial performance substantially improved during his appointment.\n</blockquote>\n<blockquote>\n This incident once again raised the market’s concern about Baidu’s turnover of key executives, including ex-chief scientist Andrew Ng and ex-senior vice president Jin Wang. In May 2019, Baidu announced the departure of senior vice president Hailong Xiang, who had been with Baidu since 2005. His departure is believed to be a result of Baidu’s inability to develop another successful and profitable business outside of search.\n</blockquote>\n<blockquote>\n The introduction of a senior management retirement plan and a young leadership development program signifies Baidu’s determination to revamp its management and reinvigorate its businesses in the new Internet era. Shen Dou leads the mobile ecosystem group now. He has a technical background and puts more focus on more user experience versus maximizing sales. There are now more interactions between the sales, commercial product team, and the user experience team, which we think is better for Baidu’s sustainability.\" - Morningstar\n</blockquote>\n<p>Unlike the management at Tencent, which Morningstar considers \"exemplary\" or the \"deep bench\" at Alibaba, BIDU has struggled with management in recent years.</p>\n<blockquote>\n B shares, which are owned by the CEO and his affiliates, have 10 times the voting rights of Class A shares. Therefore,\n <b>Li controls 55.4% of the equity voting rights</b>&nbsp;as of January 2020.As a result, these Class B shareholders have a disproportionately large influence over key matters such as the election of directors and significant corporate transactions, including mergers and the sale of the company or assets.\" - Morningstar\n</blockquote>\n<p>BIDU's founder and CEO controls 55% of the vote and thus is effectively king of Baidu. If shareholders don't like what management does, they have no recourse other than selling.</p>\n<p>Management isn't a poor capital allocator, but in recent years it hasn't been firing on all cylinders when it comes to pivoting to growth catalysts as easily as JD, BABA, and TCEHY have.</p>\n<blockquote>\n Some of Baidu’s acquisitions and new business developments have proved unsuccessful.\n</blockquote>\n<blockquote>\n These include the acquisition of 59% of Nuomi, a group-buying service provider, for $160 million in 2013 and the remaining stake in 2014 for an undisclosed sum, and Raven Tech for $90 million in 2017...\n</blockquote>\n<blockquote>\n Baidu’s investments in online-to-offline businesses such as deliveries and Nuomi led to its&nbsp;\n <b>operating margin declining from 26.1% in 2014 to 14.2% in 2016</b>&nbsp;but they did not gain as much scale as Meituan.\n</blockquote>\n<blockquote>\n However, we refrain from giving a Poor stewardship rating to Baidu for several reasons.\n</blockquote>\n<blockquote>\n <b>Baidu made the right decision in moving away from the O2O businesses, which led to margin improvement to 18.5% in 2017</b>and investing in mobile and AI, which we believe is sensible given that they complement its strong core search business.\n</blockquote>\n<blockquote>\n Also, Baidu’s return on invested capital has been way higher than its weighted average cost of capital of 9.8% over the past 10 years.\" - Morningstar\n</blockquote>\n<p>And of course, every investor in Chinese tech has to understand VIE regulatory risk.</p>\n<blockquote>\n Like many other Chinese Internet companies listed in overseas markets, Baidu operates under a&nbsp;\n <b>variable interest entity structure</b>&nbsp;designed to let companies bypass Chinese legal restrictions on foreign ownership in certain sectors.\n</blockquote>\n<blockquote>\n Baidu's foreign investors essentially hold shares of Baidu's VIE domiciled in the Cayman Islands.\n <b>We don't expect any legal challenges to VIE structures by the Chinese government</b>&nbsp;and believe that Baidu will consider a China depositary receipt listing in the future.\n</blockquote>\n<blockquote>\n However, if the legitimacy of Baidu's related VIE is found to violate applicable law or regulation, Chinese regulatory authorities might take action, including revoking the business and operating licenses of Baidu's subsidiaries or the VIE, or discontinuing, restricting, or restructuring Baidu's operations.\n</blockquote>\n<blockquote>\n Since the Chinese Ministry of Commerce has the jurisdiction to regulate VIEs,\n <b>we believe overseas investors would have limited legal rights</b>.\" - Morningstar\n</blockquote>\n<p>VIE regulatory risk is the reason that all Chinese tech stocks are speculative, and always will be, regardless of quality (Tencent is a 12/12 speculative Ultra SWAN for this reason).</p>\n<p>How do you measure and factor in such a complex risk profile?</p>\n<p>By turning to the expert consensus.</p>\n<ul>\n <li>39 analysts that cover BIDU and collectively know it better than anyone other than management</li>\n <li>and whether or not scary headlines meaningfully alter the investment thesis</li>\n <li>2 credit rating agencies</li>\n <li>3 ESG risk rating agencies</li>\n <li>44 total experts that monitor BIDU's risk profile for DK and will let us know if the thesis is weakening, strengthening or breaks</li>\n</ul>\n<p><b>ESG Material Financial Risk Analysis</b></p>\n<p><b>Essential To Fully Understanding A Company's Overall Risk Profile Especially Chinese Tech Companies</b></p>\n<p>According to the world's best risk assessors, ESG metrics are a critical component of a company's overall risk profile. Here's who considers ESG important and builds it into their safety models and ratings.</p>\n<ul>\n <li><p>BlackRock - #1 asset manager in the world</p></li>\n <li><p>MSCI - #1 indexing giant</p></li>\n <li><p>Morningstar</p></li>\n <li><p>Reuters'/Refinitiv</p></li>\n <li><p>ISS (Institutional Shareholder Services) - #1 corporate proxy firm on earth</p></li>\n <li><p>S&amp;P</p></li>\n <li><p>Fitch</p></li>\n <li><p>Moody's</p></li>\n <li><p>DBRS (Canadian credit rating agency)</p></li>\n <li><p>AM Best (insurance industry rating agency)</p></li>\n <li><p>Bank of America - one of the 16 most accurate economic/analyst teams in the world according to Market Watch</p></li>\n <li><p>Bloomberg</p></li>\n <li><p>FactSet Research</p></li>\n <li>State Street - one of the largest custodial banks on earth</li>\n <li>Wells Fargo - one of the 16 most accurate economic/analyst teams in the world according to Market Watch</li>\n <li>NAREIT</li>\n</ul>\n<blockquote>\n Companies with strong ESG profiles may be better positioned for future challenges and experience\n <b>fewer instances of bribery, corruption, and fraud.</b>\" - MSCI (Emphasis added)\n</blockquote>\n<p>Bank of America's research finds that ESG metrics also help improve the long-term profitability and outcomes at companies.</p>\n<blockquote>\n <b>Punchline: higher ROE, lower risk &amp; lower cost of capital</b>\n</blockquote>\n<blockquote>\n We find that companies with greater gender diversity at the board/management level typically see&nbsp;\n <b>higher ROE and lower earnings risk than peers.</b>\n</blockquote>\n<blockquote>\n Moreover, based on disclosure data from ICE, we find gender diversity in management is associated with a&nbsp;\n <b>~20% premium on P/E</b>&nbsp;on an overall and sector-neutral basis.\n</blockquote>\n<blockquote>\n Ethnic and racial workforce diversity shows similarly strong results:\n <b>higher ROE, lower risk, and significant premia on P/E and P/BV.</b>\" - Bank of America (emphasis original)\n</blockquote>\n<p>ESG isn't about political correctness, it's about sound business practices and maximizing long-term profits by avoiding blowing up companies in the short to medium-term.</p>\n<p><b>Baidu Consensus ESG Risk Rating</b></p>\n<table>\n <colgroup></colgroup>\n <tbody>\n  <tr>\n   <td><b>Rating Agency</b></td>\n   <td><b>Industry Percentile</b></td>\n   <td><p><b>Rating Agency Classification</b></p></td>\n  </tr>\n  <tr>\n   <td>MSCI</td>\n   <td>54.0%</td>\n   <td><p>BB Below-Average</p></td>\n  </tr>\n  <tr>\n   <td>Morningstar/Sustainalytics</td>\n   <td>40.2%</td>\n   <td><p>24.4/100 Medium Risk</p></td>\n  </tr>\n  <tr>\n   <td>Reuters'/Refinitiv (Combined ESG Rating)</td>\n   <td>52.6%</td>\n   <td>Satisfactory</td>\n  </tr>\n  <tr>\n   <td>S&amp;P</td>\n   <td>NA</td>\n   <td>NA</td>\n  </tr>\n  <tr>\n   <td><b>Consensus</b></td>\n   <td><b>48.9%</b></td>\n   <td><b>Average</b></td>\n  </tr>\n </tbody>\n</table>\n<p><i>(Sources: MSCI, Morningstar, Reuters'/Refinitiv)</i></p>\n<p>According to Morningstar, MSCI, and Reuter's BIDU's overall handling of its long-term financial ESG risk is average, in the 49th percentile.</p>\n<ul>\n <li>which is actually the highest ESG score of any of the big China tech stocks</li>\n <li>ESG investors probably want to avoid Chinese companies</li>\n</ul>\n<p><img src=\"https://static.tigerbbs.com/afa54b995a935d581ed79c58fb5d4920\" tg-width=\"640\" tg-height=\"491\"><img src=\"https://static.tigerbbs.com/464e286a82c2e31d4b5bc2a67525beb8\" tg-width=\"640\" tg-height=\"229\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0b0b24c0262471afee43fa88dfe8da44\" tg-width=\"640\" tg-height=\"319\"><span>(Source: MSCI)</span></p>\n<p>Chinese companies tend to score poorly on ESG due to governance issues.</p>\n<p>But note that BIDU used to be rated CCC very poor and has seen two rating upgrades in two years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/81242ba4340325a61c591a15f1e0aed7\" tg-width=\"640\" tg-height=\"453\"><span>(Source: BIDU IR)</span></p>\n<p>In recent years BIDU did establish an ESG committee that may explain the improvement in ESG risk scores.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/01d6eec0412fa9351dcb8716bbbbc1a4\" tg-width=\"640\" tg-height=\"540\"><span>(Source: BIDU IR)</span></p>\n<blockquote>\n To enhance the integrity of mobile information and continue to be a leader in AI, we devote time and attention to the needs and demands of stakeholders, including suppliers, partners, governments, social institutions, users, employees, communities, and the environment itself.\n</blockquote>\n<blockquote>\n We actively explore low carbon operations, sustainable economic indicators, supply chain management, intellectual property, technological innovation, compliance, data privacy, information security, user experience, personnel training, employee rights, and community engagement.\n</blockquote>\n<blockquote>\n We aim to fully integrate an ESG philosophy and standards into our management, solve social problems with technology, leverage our corporate strength and innovation capability, and contribute long-term, sustainable value to stakeholders and the human community at large.\" - BIDU ESG mission statement\n</blockquote>\n<p>BIDU is talking the talk, and apparently beginning to walk the walk as well when it comes to managing long-term risk.</p>\n<p><img src=\"https://static.tigerbbs.com/5588fc730d2ccc5631369a46ea7bdd1b\" tg-width=\"640\" tg-height=\"456\"><img src=\"https://static.tigerbbs.com/2b3f779db4dbecb7bcc0e0880b6f4ae3\" tg-width=\"640\" tg-height=\"293\"></p>\n<p>Morningstar rates BIDU below average compared to its peers, but on par with the likes of Spotify, Snap, and MercadoLibre. In fact, Morningstar considers BIDU's ESG risk to be in the top 36% of all companies it rates.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ea303ae18b648b1beee3ba4bb69b599c\" tg-width=\"640\" tg-height=\"308\"><span>(Source: Reuters'/Refinitiv)</span></p>\n<p>Reuters/Refinitv is the most robust ESG model we have access to. Over 450 metrics in total make up that score.</p>\n<ul>\n <li>BIDU scores rather poorly on governance and environmental issues</li>\n</ul>\n<p>The bottom line is that all companies have complex risk profiles that need to be considered before investing.</p>\n<p>The DK Safety and quality model don't ignore any risk, and BIDU's risks are firmly baked into its speculative blue-chip rating.</p>\n<p>A 32% margin of safety compensates us appropriately for all of the company's risks, and what could go wrong in the future.</p>\n<p>However, more risk-intolerant investors will want to avoid BIDU and Chinese companies in general.</p>\n<p><b>Bottom Line: It's Time To Be Greedy When Others Are Fearful About Baidu</b></p>\n<p>In this highly overvalued market, it's easy to throw up your hands and shout \"everything is expensive and it's dangerous to buy any stock.\"</p>\n<p>While there are many speculative bubbles that could destroy your retirement dreams, there are ALWAYS great blue-chip bargains available.</p>\n<p>Baidu is one of those potentially exceptional long-term opportunities right now. Its 40% bear market, partially created by forced institutional margin call selling, allows anyone comfortable with its risk profile to buy the Google of China at a 32% margin of safety.</p>\n<p>Is Baidu speculative? Sure, all Chinese tech stocks are. Is it worth risking a small amount of discretionary savings to see whether Baidu can deliver on its AI/Driverless car/Streaming plans?</p>\n<p>I think so. If Baidu lives up to expectations, then it could potentially double within three years and almost triple within five.</p>\n<p>Barring the most extreme stock market bubble in history, one that surpasses the tech mania of the late '90s, there is no chance the S&amp;P 500 and Nasdaq will even come close.</p>\n<p>And to achieve such returns Baidu doesn't have to fly off into a speculative bubble. It merely has to return to fair value and grow at the impressive rates analysts expect and it has delivered in the past.</p>\n<p>I can't tell you what Baidu's price will do over the next year. I can tell you that the 65% upside analysts expect over the next 12 months is 100% fundamentally justified.</p>\n<p>For those comfortable with the complex risk profile inherent to Chinese tech stocks, a small position in Baidu at some of the best valuations in years is a reasonable and prudent decision.</p>\n<p>Basically, it's time to be greedy when others are fearful about the Google of China.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Reasons Baidu Could Make You Rich</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Reasons Baidu Could Make You Rich\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-03 12:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.\n...</p>\n\n<a href=\"https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"09888":"百度集团-SW","BIDU":"百度"},"source_url":"https://seekingalpha.com/article/4423641-4-reasons-baidu-make-you-rich","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1121605010","content_text":"Summary\n\nStrong corporate earnings and great economic data keeps the market grinding higher. The S&P 500 is 36% historically overvalued and has just 28% upside potential over the next five years.\nFortunately, whatever your goals, yield, value, growth, or total returns, something great is always on sale if you know where to look.\nBaidu is the Google of China, and planning on increasing spending by 30% annually over the coming years, focusing on AI, driverless cars, and streaming.\nIn recent weeks it plunged 40%, partially due to forced hedge fund margin call selling. This creates a potentially exceptional opportunity to be \"greedy when others are fearful\" about this speculative hyper-growth blue-chip.\nI recently bought a starter position in Baidu, because it's 31% undervalued and analysts think it could double in the next three years, and almost triple over the next five. For anyone comfortable with the complex risk profile of Chinese tech giants, Baidu is one of the most reasonable and prudent hyper-growth blue-chips you can buy today.\n\nPhoto by DNY59/iStock via Getty Images\nOver seven years as an analyst I've studied the greatest investors in history, to see what strategies made them legends.\nGreatest Investors In History: Masters Of Financial Science\n\n\n\n\nName\nReturns\nTime Horizon\nMost Famous For\n\n\nJim Simmons (Co-Founder Renaissance Technologies)\n71.8% CAGR\n1994 to 2014 (best investing record ever recorded)\nPure Quant Based Investing\n\n\nJoel Greenblatt\n40% CAGR\n21 years at Gotham Capital\n\"Above-Average Quality Companies At Below-Average Prices\"\n\n\nPeter Lynch\n29.2% CAGR at Fidelity's Magellan Fund\n1977 to 1990 (13 years)\n\"Growth At A Reasonable Price\"\n\n\nBill Miller (Legg Mason Value Trust 1990 to 2006)\n22.8% CAGR and beat the S&P 500 for 15 consecutive years\n16 years\n\n\nWarren Buffett\n20.8% CAGR at Berkshire\n55 Years\nGreedy when others are fearful\n\n\nBenjamin Graham\n20% CAGR vs 12% S&P 500\n1934 to 1956 (22 years)\nMargin of Safety\n\n\nEdward Thorp\n20+% CAGR\nover 30 years\ninvented card counting,pure statistically-based investing\n\n\nCharlie Munger\n19.80%\n1962 to 1975\nWonderful companies at fair prices\n\n\nHoward Marks\n19% CAGR\nSince 1995\nValuation Mean Reversion\n\n\nAnne Scheiber\n18.3% CAGR\n50 years\nTurned $5K into $22 million with no formal training, purely withtax-efficient buy and hold blue-chip investing.\n\n\nJohn Templeton\n300% from 1939 to 1943, 15.8% CAGR from 1954 to 1992\n38 years\nMarket Cycles\n\n\nCarl Icahn\n14.6% CAGR vs 5.6% S&P 500\n2001 to 2016 (15 Years)\n\n\nDavid Swenson\n13.9% CAGR at Yale's Endowment (includes bonds and alternative assets) vs 10.7% S&P 500\n30 years\nAlternative Asset Allocation\n\n\nGeraldine Weiss\n11.2% vs 9.8% S&P 500\n37 years\nBest risk-adjusted track recordof any newsletter over 30 years according to Hubbert Financial Digest, popularizeddividend yield theory(the only strategy she employed)\n\n\n\nCombining these lessons, along with decades of market studies from leading research institutions and blue-chip analyst firms, I've determined that there are six fundamentals that over the long term will make you rich (assuming you have discretionary savings to invest of course).\n\nPortfolio risk-management\nsafety\nquality\nyield\ngrowth\nand value\n\nWhen combined with patience, time, and discipline, these are what made the greatest investors in history the legends they are today.\nYou and I may never match the returns of the legends, but if we practice disciplined financial science we can avoid costly mistakes, and focus on the highest probability/low-risk blue-chips.\n\n It's remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.\" - Charlie Munger\n\nThese are the \"consistently not stupid\" decisions that made Charlie Munger and Warren Buffett so successful.\nToday I want to explain why I've recently opened a starter tracking position in speculative hyper-growth blue-chip Baidu (BIDU).\n\nAll Chinese tech giants are suffering a bear market right now. But notice how Baidu recently fell 40% in a matter of weeks.\n\n Baidu was also held by now-infamous hedge fund Archegos Capital Management at that time, which blew up during the same week. When the highly levered Archegos was unable to meet a margin call, banks seized Archegos' assets, including Baidu, and sold them off in massive blocks, accelerating Baidu's plunge.\" -Motley Fool\n\nInstitutional forced selling is one of the best opportunities for prudent long-term investors to buy the world's highest quality companies at mouth-watering prices.\n\nLowe's (LOW) and Realty Income (O) both plunged 25% on March 16th, due to institutional forced selling.\nIn other words, when hedge funds get margin calls, they become the ultimate dumb money. Taking the other side of those trades can be the way to earn Buffett-like returns, through buying and holding blue-chip investing.\nSo let me explain the four reasons why I consider it time to get greedy when others are fearful on Baidu.\n\n Today I buy what others won't, so tomorrow I earn returns others can't.\"\n\n\n  - Paraphrase of Jerry Rice\n\nReason 1: A Speculative Blue-Chip Quality Company\nAccording to the 2017 studyDo Stocks Outperform Treasury Bills?by Hendrik Bessembinder of Arizona State University's W.P. Carey School of Business 52% of all stocks, lose money over time.\nThis study looked at 26,000 companies from 1926 to 2016 and found that about 12% went to zero.\n\n(Source: Bessembinder et al)\nFrom 1926 to 2016 over 3,000 US companies listed on US exchanges went bankrupt. 1,100 or about 4%, delivered 100% of net positive returns. Just 48% of stocks delivered positive returns.\nIn other words, safety and quality are what can help you avoid the value traps that don't make any money or lose all of your savings.\nThe Dividend Kings quality scores factor in 143 fundamental metrics covering\n\ndividend safety\nbalance sheet strength\nshort and long-term bankruptcy risk\naccounting and corporate fraud risk\nprofitability and business model\ncost of capital\nlong-term sustainability (ESG scores and trends from MSCI, Morningstar, and Reuters'/Refinitiv)\nmanagement quality\ndividend friendly corporate culture/income dependability\nlong-term total returns (a Ben Graham sign of quality)\n\nOur model actually includes over 1,000 metrics if you count everything factored in by eight rating agencies we use to assess fundamental risk.\nEvery metric was selected based on\n\ndecades of empirical data\nthe experience of the greatest investors in history\neight rating agencies\nand what blue-chip economists and analyst firms consider most closely correlated to a company's long-term success.\n\nBaidu's quality is 9/12 speculative blue-chip, meaning I recommend a 2.5% max risk cap position sizing.\nDividend Kings Quality Rating System\n\n\n\n\nQuality Score\nMeaning\nMax Invested Capital Risk Recommendation\nMargin Of Safety Potentially Good Buy\nStrong Buy\nVery Strong Buy\nUltra-Value Buy\n\n\n3\nTerrible, Very High Long-Term Bankruptcy Risk\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n4\nVery Poor\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n5\nPoor\n0%\nNA (avoid)\nNA (avoid)\nNA (avoid)\nNA (avoid)\n\n\n6\nBelow-Average, Fallen Angels (very speculative)\n1%\n45%\n55%\n65%\n75%\n\n\n7\nAverage (Relative to S&P 500)\n2.5%\n35%\n45%\n55%\n65%\n\n\n8\nAbove-Average\n5% (unless speculative then 2.5%)\n25% to 30%\n35% to 40%\n45% to 50%\n55% to 60%\n\n\n9\nBlue-Chip\n7% (unlessspeculativethen2.5%)\n20% to25%\n30% to35%\n40% to45%\n50% to55%\n\n\n10\nSWAN (a higher caliber of Blue-Chip)\n7% (unless speculative then 2.5%)\n15% to 20%\n25% to 30%\n35% to 40%\n45% to 50%\n\n\n11\nSuper SWAN (exceptionally dependable blue-chips)\n7% (unless speculative then 2.5%)\n10% to 15%\n20% to 25%\n30% to 35%\n40% to 45%\n\n\n12\nUltra SWAN (as close to perfect companies as exist)\n7% (unless speculative then 2.5%)\n5% to 10%\n15% to 20%\n25% to 30%\n35% to 40%\n\n\n\nWhat exactly makes Baidu a speculative blue-chip?\nBalance Sheet Safety\n\n\n\n\nRating\nDividend Kings Safety Score (75 Safety Metric Model)\nApproximate Dividend Cut Risk (Average Recession)\nApproximate Dividend Cut Risk In Pandemic Level Recession\n\n\n1 (very unsafe)\n0% to 20%\nover 4%\n16+%\n\n\n2 (unsafe average)\n21% to 40%\nover 2%\n8% to 16%\n\n\n3 (average)\n41% to 60%\n2%\n4% to 8%\n\n\n4 (safe)\n61% to 80%\n1%\n2% to 4%\n\n\n5 (very safe)\n81% to 100%\n0.5%\n1% to 2%\n\n\nBIDU\n76%\nA stable rating from Fitch, A3 (A- equivalent) stable rating Moody's\n0.66% to 2.5% 30-year default/bankruptcy risk\n\n\n\nLong-Term Dependability\n\n\n\n\nCompany\nDK Long-Term Dependability Score\nInterpretation\nPoints\n\n\nS&P 500/Industry Average\n58%\nAverage Dependability\n2\n\n\nNon-Dependable Companies\n31% or below\nPoor Dependability\n1\n\n\nRelatively Dependable Companies\n32% to 70%\nBelow to Above-Average Dependability\n2\n\n\nVery Dependable Companies\n71% to 80%\nVery Dependable\n3\n\n\nExceptionally Dependable Companies\n81% or higher\nExceptional Dependability\n4\n\n\nBIDU\n67%\nAbove-Average Dependability\n2\n\n\n\nOverall Quality\n\n\n\n\nBIDU\nFinal Score\nRating\n\n\nSafety\n76%\n4/5\n\n\nBusiness Model\n80%\n3/3\n\n\nDependability\n67%\n2/4\n\n\nTotal\n73%\n9/12 Speculative Blue-Chip\n\n\n\nBaidu is the 245th Highest Quality Master List Company (Out of 495) = 49th Percentile\n(Source: DK Safety & Quality Tool) updated at the end of each day, sorted by overall quality score\n\ngreen = potentially good buy or better\nblue = potentially reasonable buy\nyellow = hold\nred = potential trim/sell\n\nBIDU's 73% quality score means it's the 245th highest quality company on the DK 500 Master List. This list includes the world's highest quality companies including\n\nall dividend champions\nall dividend aristocrats\nall dividend kings\nall 12/12 Ultra SWANs (as close to perfect quality as exists on Wall Street, think wide moat aristocrats)\nnumerous global aristocrats (such as BTI, ENB, and NVS)\n\nBIDU is about average quality compared to the world's elite companies and similar in quality to such 9/12 blue-chips and, 10/12 SWANs, as\n\nQualcomm (QCOM)\nBecton, Dickinson and Company (BDX) - dividend aristocrat\nW. P. Carey (WPC)\nSonoco Products (SON) - dividend champion\nH.B. Fuller (FUL) - dividend king\nMetLife (MET)\nDigital Realty Trust (DLR)\nLeggett & Platt (LEG) - dividend aristocrat\nV.F. Corp (VFC) - dividend aristocrat\nBank of New York Mellon (BK)\n\nBaidu has a strong cash-rich balance sheet, though it is taking on extra leverage in order to fund its ambitious growth efforts.\n(Source: Gurufocus Premium)\nIncluding leasing expenses, BIDU has 2X as much cash as debt.\nFitch and Moody's rate Baidu A stable and A3 (A- equivalent) stable outlooks, indicating 0.66% to 2.5% 30-year default/bankruptcy risk.\nAnalysts expect much higher spending in the short-term to cause leverage to increase, though rating agencies don't expect this to be permanent.\nThe key safety ratios with Baidu are the F, Z, and M scores, advanced accounting ratios created by leading research institutions that use asset ratios scanned from quarterly filings.\n\nF-score measures short-term bankruptcy risk\nZ-score measures 2-year bankruptcy risk (with 84% to 92% historical accuracy)\nM-score measures accounting fraud risk (with 76% historical accuracy)\n\n7/9 is very safe on the F-score = very low short-term bankruptcy risk.\n3.59 vs 3+ very safe and 9.51 historical, confirms the A-credit ratings and low long-term risk of losing all your money.\nAnd the M-score of -2.42 indicates a significantly less than 17.5% probability that Baidu is cooking its books.\n\n(Source: Gurufocus)\nBIDU's historically unsafe M-score has been improving and became safe at the end of 2014 and has remained so for the last seven years.\n\nits safety and quality score still get dinged though because we factor in every important metric so we don't miss any warning signs\n\nThe M-score is 76% historically accurate at catching accounting fraud and 82.5% accurate at finding companies with honest accounting.\nCombined with its credit ratings and risk ratings from 5 different rating agencies, plus its auditors, I can say with relatively high confidence that Baidu is not the next Luckin Coffee.\nQuality is a proven alpha factor, one of seven that beats the market over the long term.\n\nOn Wall Street, profitability over time is the most accurate proxy for quality.\n\ncredit ratings are one of the best qualitative quality proxies\n\n(Source: Gurufocus Premium)\nBaidu's profitability is historically in the top 20% of its peers, confirming a wide and stable moat.\n\n\n\n\nMetric\nIndustry Percentile\nMajor Interactive Media Companies More Profitable Than BIDU (Out of 543)\n\n\nOperating Margin\n67.35\n177\n\n\nNet Margin\n81.26\n102\n\n\nReturn On Equity\n67.86\n175\n\n\nReturn On Assets\n68.47\n171\n\n\nReturn On Capital\n69.61\n165\n\n\nAverage\n70.91\n158\n\n\n\n(Source: Gurufocus Premium)\nOver the last year, increased growth spending has reduced profitability to the top 29% of peers, though that's expected to recover in the future.\n\nfor example, returns on equity are expected to rise 10% by 2024\n\nJoel Greenblatt defined quality by return on capital, his gold standard proxy for quality and moatiness.\n\noperating income (EBIT)/operating capital (the money it takes to run the business for a year)\n\nGreenblatt's entire legendary track record, 40% annual returns for 21 years, was done by combining high ROC with low valuations.\n(Source: Gurufocus Premium)\nEven with heavy growth spending in recent years, Baidu's returns on capital are very impressive.\nThe average Master List company has 88% ROC.\nThe average aristocrat 83%.\nThe average Ultra SWAN 87%.\nOver the past year, BIDU's ROC has been 103% and in Q4 it was 95%.\nAnalysts expect that in the next few years, ROC will revert back to its historical 205%.\nA level of profitability that, according to Joel Greenblatt, would make BIDU one of the highest quality companies in the world.\nBaidu's future growth is expected to come from aggressive investments into driverless cars (long-term) and AI and streaming in the short and medium term.\nBaidu Growth Spending Consensus Forecast\n\n\n\n\nYear\nSG&A\nR&D\nCapex\nTotal Growth Spending\nSales\nGrowth Spending/Sales\n\n\n2020\n$2,792\n$3,016\n$993\n$4,009\n$16,548\n24.23%\n\n\n2021\n$3,574\n$3,554\n$1,893\n$5,447\n$19,517\n27.91%\n\n\n2022\n$3,974\n$4,062\n$2,220\n$6,282\n$22,235\n28.25%\n\n\n2023\n$5,049\n$5,858\n$2,719\n$8,577\n$25,258\n33.96%\n\n\n2024\nNA\nNA\n$1,504\nNA\n$30,071\nNA\n\n\n2025\nNA\nNA\nNA\nNA\nNA\nNA\n\n\n2026\nNA\nNA\nNA\nNA\nNA\nNA\n\n\nAnnualized Growth\n21.83%\n24.77%\n10.94%\n28.85%\n16.10%\nNA\n\n\n\n(Source: FactSet Research Terminal)\nHistorically Baidu spends about 17% of its revenue on growth. By 2023 that's expected to double.\nTotal growth spending is expected to grow at almost 30% annually for the next three years.\nBaidu Consensus Profit Forecast\n\n\n\n\nYear\nSales\nFCF\nEBITDA\nEBIT (Operating Income)\nNet Income\n\n\n2020\n$16,548\n$2,106\n$4,251\n$2,216\n$3,473\n\n\n2021\n$19,517\n$3,947\n$4,734\n$2,629\n$2,760\n\n\n2022\n$22,235\n$5,013\n$5,812\n$3,400\n$3,381\n\n\n2023\n$25,258\n$5,854\n$6,730\n$4,163\n$4,226\n\n\n2024\n$30,071\n$7,421\nNA\n$6,195\n$5,268\n\n\nAnnualized Growth\n16.10%\n37.01%\n16.55%\n29.31%\n10.98%\n\n\n\n(Source: FactSet Research Terminal)\nManagement's guidance, which is the basis for these consensus forecasts, is for strong revenue growth. Net margins are expected to compress but cash flows are expected to soar.\nFree cash flow, the ultimate source of all intrinsic value according to Ben Graham and Warren Buffett, is expected to more than triple by 2024.\nBaidu Consensus Margin Forecast\n\n\n\n\nYear\nFCF Margin\nEBITDA Margin\nEBIT (Operating) Margin\nNet Margin\n\n\n2020\n12.7%\n25.7%\n13.4%\n21.0%\n\n\n2021\n20.2%\n24.3%\n13.5%\n14.1%\n\n\n2022\n22.5%\n26.1%\n15.3%\n15.2%\n\n\n2023\n23.2%\n26.6%\n16.5%\n16.7%\n\n\n2024\n24.7%\nNA\n20.6%\n17.5%\n\n\nAnnualized Growth\n18.01%\n1.23%\n11.37%\n-4.42%\n\n\n\n(Source: FactSet Research Terminal)\nBaidu's profitability is ultimately expected to improve, though net margins won't until its major growth initiatives are over.\n(Source: FactSet Research Terminal)\nBIDU ended 2020 with $5.6 billion in cash, and that's expected to rise to $22 billion by 2023, and potentially nearly $60 billion by 2024.\nThat may not be as impressive as some tech companies ($601 billion by 2026 for Amazon), but it does mean that Baidu's war chest and financial flexibility to pivot towards AI, driverless cars, and streaming will grow significantly in future years.\nBaidu Medium-Term Growth Consensus\n\n\n\n\nMetric\n2020 Actual Growth\n2021 consensus growth\n2022 consensus growth\n2023 consensus growth\n\n\nEPS\n31%\n7%\n18%\n16%\n\n\nOwner Earnings (Buffett smoothed out FCF)\n124%\n22%\nNA\nNA\n\n\nOperating Cash Flow\n-14%\n59%\n31%\n7%\n\n\nFree cash flow\n96%\n85%\n22%\nNA\n\n\nEBITDA\n-18%\n53%\n27%\n24%\n\n\nEBIT (operating income)\n130%\n26%\n26%\n19%\n\n\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nIn the next few years, Baidu's growth efforts are expected to result in strong growth. But what's attracted me to the Google of China, is that this hyper-growth is expected to continue for many years to come.\nReason 2: Long-Term Hyper-Growth Potential\n(Source: FactSet Research Terminal)\nBIDU's AI, streaming, and driverless car investments are showing up in \"other services\" and that revenue is expected to grow almost 50% in 3 years.\n\n(Source: F.A.S.T. Graphs, FactSet Research)\n\n16.0% to 17.5% long-term growth consensus range\n6% to 28% growth consensus range adjusted for historical margin of error\n\n\nThe margins of error on BIDU forecasts are very wide. 33% of the time it grows much faster than expected, 33% of the time much slower, and 33% of the about as fast as expected.\n\nmargins of error over the last decade (excluding outliers) are 60% to the downside, 55% to the upside\nthe long-term growth consensus range: 16% to 18% CAGR\nthe margin of error adjusted long-term analyst growth consensus range: 6% to 28% CAGR\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU's historical growth is from -9% to 52%. So relatively high growth uncertainty, more so than most tech blue-chips.\n\nand thus the $650 investment vs $10K in GOOG, $89K in BABA, and $200K in Amazon\n\nHowever, analysts expect growth to be similar to the 20% growth of the last decade.\nAnd at today's high margin of safety, we're likely getting a good deal to compensate for BIDU's growth uncertainty and complex risk profile.\nReason 3: Highly Attractive Valuation\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU growing at the rates analysts expect in the future has historically been valued at 23X to 26X earnings.\n(Source: FactSet Research Terminal)\nBIDU is currently trading at 20.4X forward earnings and 13.6X EV/EBITDA.\nEV/EBITDA is market cap + net debt/EBITDA and is Joel Greenblatt's and private equity's favorite valuation metric.\nBaidu's 13-year median EV/EBITDA is 23.2, and its trading at 13.6, implying a potential 42% discount to fair value.\n\n\n\n\nMetric\nHistorical Fair Value (12-years)\n2020\n2021\n2022\n2023\n\n\nEarnings\n25.0\n$243.87\n$261.27\n$307.91\n$357.77\n\n\nOwner Earnings (Buffett smoothed out FCF) - 10 yr\n23.5\n$324.46\n$394.46\nNA\nNA\n\n\nOperating Cash Flow\n19.9\n$202.33\n$321.22\n$420.37\n$448.64\n\n\nFree Cash Flow (11-yr)\n27.5\n$220.77\n$408.53\n$497.28\nNA\n\n\nEBITDA\n22.0\n$190.60\n$291.18\n$370.80\n$459.36\n\n\nEBIT (operating income)\n34.5\n$207.78\n$261.14\n$328.78\n$392.83\n\n\nAverage\n$224.60\n$312.71\n$373.81\n$410.40\n\n\nCurrent Price\n$215.83\n\n\nDiscount To Fair Value\n3.91%\n30.98%\n42.26%\n47.41%\n\n\nUpside To Fair Value\n4%\n45%\n73%\n90%\n\n\n\n(Source: F.A.S.T. Graphs, FactSet Research)\nBIDU is about 31% historically undervalued right now, meaning that if it grows as expected through 2023 and returns to fair value that's 90% upside potential.\n\n$350 is the median 12-month price target\n65% upside potential over the next 12 months according to analysts\n\nAnd that guestimate is 100% justified by fundamentals.\n\n\n\n\nRating\nMargin Of Safety For Speculative 9/12 Blue-Chip Quality Companies\n2020 Price\n2021 Price\n2022 Price\n\n\nPotentially Reasonable Buy\n0%\n$224.60\n$312.71\n$373.81\n\n\nPotentially Good Buy\n25%\n$168.45\n$234.53\n$280.35\n\n\nPotentially Strong Buy\n35%\n$145.99\n$203.26\n$242.97\n\n\nPotentially Very Strong Buy\n45%\n$123.53\n$171.99\n$205.59\n\n\nPotentially Ultra-Value Buy\n55%\n$101.07\n$140.72\n$168.21\n\n\nCurrently\n$213.41\n5%\n32%\n43%\n\n\nUpside To Fair Value (Not Including Dividends)\n5%\n47%\n75%\n\n\n\nAt a 32% margin of safety, Baidu, despite all its risks, is a potentially good buy for more risk-tolerant investors.\nBut the ability to potentially enjoy monster short-term gains is just the cherry on top with Baidu.\nReason 4: Eye-Popping Long-Term Return Potential\nHere is a reasonable idea of what kind of returns you can expect buying BIDU today.\nBaidu 2023 Consensus Return Potential\n(Source: F.A.S.T. Graphs, FactSet Research)\nIf BAIDU grows as analysts expect through 2023, and returns to historical fair value, then analysts expect\n\n75% total returns\n23.3% CAGR returns\nvs -1.3% CAGR S&P 500\n\nFrom its 31% discount, BIDU has the potential to outperform the 36% overvalued S&P 500 by 78% over the next three years.\n(Source: F.A.S.T. Graphs, FactSet Research)\nCorporate earnings growth estimates are rising by the day. Yet the market has already priced in three years of earnings growth totaling 62% or 17.4% CAGR.\nOver the long term, BIDU's return outlook is also very strong.\nBaidu 2026 Consensus Return Potential\n(Source: F.A.S.T. Graphs, FactSet Research)\nIf BIDU grows as analysts expect through 2026 and returns to historical fair value you could expect\n\n179% total returns\n19.8% CAGR\nvs 4.5% CAGR S&P 500\n4.4X better than the market's consensus return potential\n\nIf BIDU delivers as analysts expect, then buying today could almost triple your money in the next five years.\n(Source: F.A.S.T. Graphs, FactSet Research)\nOver the long term, analysts expect\n\n0% yield + 17.5% growth = 17.5% CAGR very long-term total returns (after valuation changes cancel out)\n6% to 28% CAGR range\nvs 7.8% for the S&P and 10.8% for the dividend aristocrats\n\nBaidu Total Returns Since 2006\n\n(Source: Portfolio Visualizer)\nIn the last 15 years, BIDU has turned $1 into $26, adjusted for inflation, and crushed the market with 8X more wealth compounding.\nIt's expected to grow slightly slower than in the past, but the ability to potentially enjoy 17.5% hyper-growth for many years is incredibly attractive.\nBaidu Vs S&P 500 Vs Dividend Aristocrat Inflation-Adjusted Total Return Forecast: $650 Initial Investment\n\n\n\n\nTime Frame (Years)\n5.8% LT Inflation-Adjusted Returns (S&P Consensus)\n8.8% Inflation-Adjusted Returns (aristocrat consensus)\n15.5% Inflation-Adjusted Returns (BIDU consensus)\n\n\n5\n$1,325.65\n$1,524.56\n$1,336.05\n\n\n10\n$1,757.34\n$2,324.28\n$2,746.21\n\n\n15\n$2,329.62\n$3,543.51\n$5,644.73\n\n\n20\n$3,088.26\n$5,402.29\n$11,602.54\n\n\n25\n$4,093.94\n$8,236.11\n$23,848.60\n\n\n30\n$5,427.13\n$12,556.45\n$49,019.95\n\n\n35\n$7,194.46\n$19,143.06\n$100,758.76\n\n\n40\n$9,537.33\n$29,184.74\n$207,106.02\n\n\n45\n$12,643.14\n$44,493.88\n$425,699.02\n\n\n50\n$16,760.36\n$67,833.58\n$875,009.10\n\n\n\nThe ability to grow 2X to 3X as fast as the S&P 500 or aristocrats creates the potential for wealth compounding on a massive scale. Look at how large my $650 initial BIDU investment can grow, assuming analysts are right and management delivers the expected growth over time.\n\n\n\n\nTime Frame (Years)\nRatio S&P vs Aristocrat Consensus\nRatio S&P vs BIDU consensus\n\n\n5\n1.15\n1.01\n\n\n10\n1.32\n1.56\n\n\n15\n1.52\n2.42\n\n\n20\n1.75\n3.76\n\n\n25\n2.01\n5.83\n\n\n30\n2.31\n9.03\n\n\n35\n2.66\n14.01\n\n\n40\n3.06\n21.72\n\n\n45\n3.52\n33.67\n\n\n50\n4.05\n52.21\n\n\n\nOver the long term, the aristocrats are expected to quadruple the S&P 500's wealth compounding. Baidu could potentially deliver 52X as much wealth as the S&P 500.\nIs Baidu likely to grow 17.5% for 50 years? Probably not. But even if it can deliver just 10 to 20 years of hyper-growth, when combined with its attractive current valuation, that's worthy of a small initial investment in my book.\nRisk Profile: Why Baidu Isn't Right For Everyone\nThere are no risk-free companies and no company is right for everyone. You have to be comfortable with the fundamental risk profile.\nFundamental Risk Summary\n\n We think Baidu faces high levels of risk, given intense competition along with questions as to whether its AI-related investment will generate satisfactory returns.\n\n\n Though Baidu is the largest search engine in China, it is competing with the other two Internet giants, Tencent and Alibaba, and Google’s potential return to the Chinese search market is also a threat.\n\n\n Regarding the search engine business, Tencent invested in Sogou, and Alibaba acquired UC Web, which owns a mobile search engine, Shenma. Competition has extended to each key area of mobile Internet usage, such as navigation, O2O services, online video services, and so on. Baidu’s margins have been significantly dragged down by aggressive spending in video content and O2O marketing but recovered to 18.5% in 2017 from 14.2% in 2016 as Baidu divested margin-dilutive businesses.\n\n\n The major Internet companies in China have been investing in AI-related business, such as cloud computing, voice and image recognition, and autonomously driven cars. At the current stage,\n it is difficult to predict whether Baidu will be the final winner in AI and whether the returns will reward its investment.\n\n\n In addition, regulatory risk is a concern. Following the Wei Zexi incident in early 2016, Chinese authorities launched new regulations for online search and advertising, which clearly defined paid search results as advertising. These regulations took effect on Sept. 1, 2016. Given stricter standards for online advertisers, Baidu’s online marketing services revenue growth declined to 1% in 2016. If the local authorities release more policies regarding Internet business, such as online advertising and online finance, Baidu’s revenue could be negatively affected.\n\n\n Since 2017, Baidu has discontinued the disclosure of MAUs for its mobile search and mobile maps, which is possibly due to weaker numbers.\" - Morningstar\n\nBIDU's pivot into the technology of the future is potentially like Satya Nadella taking MSFT into the pure cloud-driven strategy.\nOr it could be like IBM's Watson-based flaying, major promise but poor execution over time.\n\n Baidu has the urgency to strengthen its mobile business because it has not developed another industry-leading business other than its mobile search app for years.\n\n\n Baidu’s share of mobile time spend reduced to 6.9% in March 2019 from 7.3% year over year. Baidu positions its flagship Baidu app (173 million daily average users in March 2019) as a \"super\" app that can serve a wide range of users' needs, such as reading, watching videos, shopping, transportation tickets, food services, and so on, but we believe the app is less of a super app compared with Tencent’s Wechat (1.1 billion monthly average users).\n\n\n It has copied the strategies of its peers by launching a mini-program (181 million MAU in March 2019) and short video apps (sevenfold year over year increase to 98 million MAU in March 2019 as per Questmobile).\" - Morningstar\n\nBaidu has struggled more than most Chinese tech giants to pivot and adapt to the disruption risk that is ever-present in this industry.\n\n We have not factored in the meaningful commercialization of Baidu’s AI-based services, such as voice assistant platform DuerOS, autonomous driving platform Apollo and artificial intelligence cloud services.\n\n\nSearch is driven by an artificial intelligence-powered algorithm, giving Baidu a good foundation in this segment.Baidu is also\n one of the largest and earliest companies to start AI investments in China.Currently, Baidu uses AI to recommend feeds to the app’s users to generate advertising revenue.\n\n\n IQiyi, Baidu’s online video platform, has been a key growth driver stemming from increasing willingness to pay for premium content in China and continuous advertising demand on \n iQiyi. It accounted for 29% of Baidu’s revenue in the first quarter of 2019.\n\n\n In the near term, Baidu will invest heavily in its mobile business in terms of sales and marketing, and traffic acquisition. While meaningful monetization is uncertain, we expect Baidu to increase or maintain its research and development expenditure, which is at 17% of sales in the first quarter of 2019. To fend off major competitor Tencent Video, iQiyi needs to continue to invest in premium content. Therefore, we expect Baidu’s margins to be under pressure in the near term.\" - Morningstar\n\nBut while Baidu has made some questionable investments over the years, its current focus on AI is a logical and prudent one.\nBaidu's competitive advantage in AI stems from being the first mover in Chinese search. It has the most data to feed into its machine learning algorithms, though rivals like Alibaba (BABA) and Tencent (OTCPK:TCEHY) are working hard to eat its lunch.\n\n Baidu generated 68% of its revenue during the year from its online marketing services segment, which mainly sells ads. The segment's revenue has declined year over year for seven straight quarters.\n\n\n That ongoing slowdown is troubling since Baidu's advertising rivals -- like \n Tencent and \n Bilibili --both expanded their advertising businesses over the past year. It also indicates people are spending less time on traditional online searches and more time on other digital platforms.\" - Leo Sun,Motley Fool\n\nIn recent years, BIDU's market share in digital ads has been declining, which means unlike companies like JD, BABA, and TCEHY, it's attempting to pivot from a position of weakness, not strength.\nIt has the resources to invest heavily and hopefully achieve the kinds of impressive growth rates analysts expect. But success is far from guaranteed.\nThis is why I've bought a starter 3 share tracking position in Baidu.\n\ncompared to a $10,000 position in Alphabet (GOOG)\nand an $89,000 investment into Alibaba\nand a $200,000 investment into Amazon(AMZN)\n\nAnd of course, we can't forget about the risks surrounding management and governance.\n\n Robin Yanhong Li, the founder of Baidu, has been the chairman of the board since its inception and has served as the CEO since 2004. Before that, Li worked at IDD Information Services and Infoseek in Silicon Valley, with a special focus on product development in Internet search engines. Li owned 16.4% of the company as of January 2020, and all directors and management together owned 16.5%. Jennifer Xinzhe Li stepped down as CFO in 2017 and was replaced by Herman Yu, formerly of Weibo...\n\n\n Baidu had reputational issues, with the Wei Zexi medical incident being the largest scandal, which led to a management restructuring in 2016. Three vice presidents were dismissed. Qi Lu joined Baidu in January 2017 as group president and COO but resigned in June 2018. Lu has a solid record in the U.S. technology industry, and Baidu’s financial performance substantially improved during his appointment.\n\n\n This incident once again raised the market’s concern about Baidu’s turnover of key executives, including ex-chief scientist Andrew Ng and ex-senior vice president Jin Wang. In May 2019, Baidu announced the departure of senior vice president Hailong Xiang, who had been with Baidu since 2005. His departure is believed to be a result of Baidu’s inability to develop another successful and profitable business outside of search.\n\n\n The introduction of a senior management retirement plan and a young leadership development program signifies Baidu’s determination to revamp its management and reinvigorate its businesses in the new Internet era. Shen Dou leads the mobile ecosystem group now. He has a technical background and puts more focus on more user experience versus maximizing sales. There are now more interactions between the sales, commercial product team, and the user experience team, which we think is better for Baidu’s sustainability.\" - Morningstar\n\nUnlike the management at Tencent, which Morningstar considers \"exemplary\" or the \"deep bench\" at Alibaba, BIDU has struggled with management in recent years.\n\n B shares, which are owned by the CEO and his affiliates, have 10 times the voting rights of Class A shares. Therefore,\n Li controls 55.4% of the equity voting rights as of January 2020.As a result, these Class B shareholders have a disproportionately large influence over key matters such as the election of directors and significant corporate transactions, including mergers and the sale of the company or assets.\" - Morningstar\n\nBIDU's founder and CEO controls 55% of the vote and thus is effectively king of Baidu. If shareholders don't like what management does, they have no recourse other than selling.\nManagement isn't a poor capital allocator, but in recent years it hasn't been firing on all cylinders when it comes to pivoting to growth catalysts as easily as JD, BABA, and TCEHY have.\n\n Some of Baidu’s acquisitions and new business developments have proved unsuccessful.\n\n\n These include the acquisition of 59% of Nuomi, a group-buying service provider, for $160 million in 2013 and the remaining stake in 2014 for an undisclosed sum, and Raven Tech for $90 million in 2017...\n\n\n Baidu’s investments in online-to-offline businesses such as deliveries and Nuomi led to its \n operating margin declining from 26.1% in 2014 to 14.2% in 2016 but they did not gain as much scale as Meituan.\n\n\n However, we refrain from giving a Poor stewardship rating to Baidu for several reasons.\n\n\nBaidu made the right decision in moving away from the O2O businesses, which led to margin improvement to 18.5% in 2017and investing in mobile and AI, which we believe is sensible given that they complement its strong core search business.\n\n\n Also, Baidu’s return on invested capital has been way higher than its weighted average cost of capital of 9.8% over the past 10 years.\" - Morningstar\n\nAnd of course, every investor in Chinese tech has to understand VIE regulatory risk.\n\n Like many other Chinese Internet companies listed in overseas markets, Baidu operates under a \n variable interest entity structure designed to let companies bypass Chinese legal restrictions on foreign ownership in certain sectors.\n\n\n Baidu's foreign investors essentially hold shares of Baidu's VIE domiciled in the Cayman Islands.\n We don't expect any legal challenges to VIE structures by the Chinese government and believe that Baidu will consider a China depositary receipt listing in the future.\n\n\n However, if the legitimacy of Baidu's related VIE is found to violate applicable law or regulation, Chinese regulatory authorities might take action, including revoking the business and operating licenses of Baidu's subsidiaries or the VIE, or discontinuing, restricting, or restructuring Baidu's operations.\n\n\n Since the Chinese Ministry of Commerce has the jurisdiction to regulate VIEs,\n we believe overseas investors would have limited legal rights.\" - Morningstar\n\nVIE regulatory risk is the reason that all Chinese tech stocks are speculative, and always will be, regardless of quality (Tencent is a 12/12 speculative Ultra SWAN for this reason).\nHow do you measure and factor in such a complex risk profile?\nBy turning to the expert consensus.\n\n39 analysts that cover BIDU and collectively know it better than anyone other than management\nand whether or not scary headlines meaningfully alter the investment thesis\n2 credit rating agencies\n3 ESG risk rating agencies\n44 total experts that monitor BIDU's risk profile for DK and will let us know if the thesis is weakening, strengthening or breaks\n\nESG Material Financial Risk Analysis\nEssential To Fully Understanding A Company's Overall Risk Profile Especially Chinese Tech Companies\nAccording to the world's best risk assessors, ESG metrics are a critical component of a company's overall risk profile. Here's who considers ESG important and builds it into their safety models and ratings.\n\nBlackRock - #1 asset manager in the world\nMSCI - #1 indexing giant\nMorningstar\nReuters'/Refinitiv\nISS (Institutional Shareholder Services) - #1 corporate proxy firm on earth\nS&P\nFitch\nMoody's\nDBRS (Canadian credit rating agency)\nAM Best (insurance industry rating agency)\nBank of America - one of the 16 most accurate economic/analyst teams in the world according to Market Watch\nBloomberg\nFactSet Research\nState Street - one of the largest custodial banks on earth\nWells Fargo - one of the 16 most accurate economic/analyst teams in the world according to Market Watch\nNAREIT\n\n\n Companies with strong ESG profiles may be better positioned for future challenges and experience\n fewer instances of bribery, corruption, and fraud.\" - MSCI (Emphasis added)\n\nBank of America's research finds that ESG metrics also help improve the long-term profitability and outcomes at companies.\n\nPunchline: higher ROE, lower risk & lower cost of capital\n\n\n We find that companies with greater gender diversity at the board/management level typically see \n higher ROE and lower earnings risk than peers.\n\n\n Moreover, based on disclosure data from ICE, we find gender diversity in management is associated with a \n ~20% premium on P/E on an overall and sector-neutral basis.\n\n\n Ethnic and racial workforce diversity shows similarly strong results:\n higher ROE, lower risk, and significant premia on P/E and P/BV.\" - Bank of America (emphasis original)\n\nESG isn't about political correctness, it's about sound business practices and maximizing long-term profits by avoiding blowing up companies in the short to medium-term.\nBaidu Consensus ESG Risk Rating\n\n\n\n\nRating Agency\nIndustry Percentile\nRating Agency Classification\n\n\nMSCI\n54.0%\nBB Below-Average\n\n\nMorningstar/Sustainalytics\n40.2%\n24.4/100 Medium Risk\n\n\nReuters'/Refinitiv (Combined ESG Rating)\n52.6%\nSatisfactory\n\n\nS&P\nNA\nNA\n\n\nConsensus\n48.9%\nAverage\n\n\n\n(Sources: MSCI, Morningstar, Reuters'/Refinitiv)\nAccording to Morningstar, MSCI, and Reuter's BIDU's overall handling of its long-term financial ESG risk is average, in the 49th percentile.\n\nwhich is actually the highest ESG score of any of the big China tech stocks\nESG investors probably want to avoid Chinese companies\n\n\n(Source: MSCI)\nChinese companies tend to score poorly on ESG due to governance issues.\nBut note that BIDU used to be rated CCC very poor and has seen two rating upgrades in two years.\n(Source: BIDU IR)\nIn recent years BIDU did establish an ESG committee that may explain the improvement in ESG risk scores.\n(Source: BIDU IR)\n\n To enhance the integrity of mobile information and continue to be a leader in AI, we devote time and attention to the needs and demands of stakeholders, including suppliers, partners, governments, social institutions, users, employees, communities, and the environment itself.\n\n\n We actively explore low carbon operations, sustainable economic indicators, supply chain management, intellectual property, technological innovation, compliance, data privacy, information security, user experience, personnel training, employee rights, and community engagement.\n\n\n We aim to fully integrate an ESG philosophy and standards into our management, solve social problems with technology, leverage our corporate strength and innovation capability, and contribute long-term, sustainable value to stakeholders and the human community at large.\" - BIDU ESG mission statement\n\nBIDU is talking the talk, and apparently beginning to walk the walk as well when it comes to managing long-term risk.\n\nMorningstar rates BIDU below average compared to its peers, but on par with the likes of Spotify, Snap, and MercadoLibre. In fact, Morningstar considers BIDU's ESG risk to be in the top 36% of all companies it rates.\n(Source: Reuters'/Refinitiv)\nReuters/Refinitv is the most robust ESG model we have access to. Over 450 metrics in total make up that score.\n\nBIDU scores rather poorly on governance and environmental issues\n\nThe bottom line is that all companies have complex risk profiles that need to be considered before investing.\nThe DK Safety and quality model don't ignore any risk, and BIDU's risks are firmly baked into its speculative blue-chip rating.\nA 32% margin of safety compensates us appropriately for all of the company's risks, and what could go wrong in the future.\nHowever, more risk-intolerant investors will want to avoid BIDU and Chinese companies in general.\nBottom Line: It's Time To Be Greedy When Others Are Fearful About Baidu\nIn this highly overvalued market, it's easy to throw up your hands and shout \"everything is expensive and it's dangerous to buy any stock.\"\nWhile there are many speculative bubbles that could destroy your retirement dreams, there are ALWAYS great blue-chip bargains available.\nBaidu is one of those potentially exceptional long-term opportunities right now. Its 40% bear market, partially created by forced institutional margin call selling, allows anyone comfortable with its risk profile to buy the Google of China at a 32% margin of safety.\nIs Baidu speculative? Sure, all Chinese tech stocks are. Is it worth risking a small amount of discretionary savings to see whether Baidu can deliver on its AI/Driverless car/Streaming plans?\nI think so. If Baidu lives up to expectations, then it could potentially double within three years and almost triple within five.\nBarring the most extreme stock market bubble in history, one that surpasses the tech mania of the late '90s, there is no chance the S&P 500 and Nasdaq will even come close.\nAnd to achieve such returns Baidu doesn't have to fly off into a speculative bubble. It merely has to return to fair value and grow at the impressive rates analysts expect and it has delivered in the past.\nI can't tell you what Baidu's price will do over the next year. I can tell you that the 65% upside analysts expect over the next 12 months is 100% fundamentally justified.\nFor those comfortable with the complex risk profile inherent to Chinese tech stocks, a small position in Baidu at some of the best valuations in years is a reasonable and prudent decision.\nBasically, it's time to be greedy when others are fearful about the Google of China.","news_type":1},"isVote":1,"tweetType":1,"viewCount":234,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}