Baidu’s shares fell by -6.87% over the past week.
On August 5, 2005, Baidu made its debut on NASDAQ at a share price of $27. As the top Chinese search engine, this online service provider ranks fourth in the global market in its sector.
What’s causing Baidu’s drop?
China is implementing stringent regulations governing the use of artificial intelligence, including security checks and content liability. This will make it difficult to incorporate AI services into the company’s products.
Furthermore, businesses must overcome US restrictions on purchasing advanced microchips.
Should you invest in Baidu?
The drop in Baidu’s shares is a temporary setback and presents a good buying opportunity. The company continues to demonstrate solid revenue, profit and search market share growth in China.
Baidu intends to bypass the authorities’ restrictions by integrating the Tongyi Qianwen language model into all of its products. The company is also working on innovative AI and autonomous vehicle initiatives.
You can capitalize on this trend by opening a trade on Baidu stock in Forex mode on our platform.
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