Analysts expect Baidu Inc. to post a revenue surge of 4.1% on Wednesday, the fastest pace in 2020, according to Bloomberg. The projections come even as its stock has gained almost threefold from its mid-March lows while the company has added $80 billion in its market value. 

Baidu's shares have surged on ad recovery signs, smart cars plan
  • Baidu’s years of investments in artificial intelligence are said to be bearing fruits as it monetizes the technology in electric vehicles and smart speakers.
  • The company is projected to enjoy multiple expansions even as its advertising has staged recovery from the mid-March lows during the onset of the coronavirus.
  • The recent stock rally of the 21-year old company has prompted it to tap capital markets with new financing plans, including a potential second listing in Hong Kong.
  • Baidu is already seeking to raise $3 billion in its biggest syndicated loan deal amidst a Hong Kong share sale said to be on track to generate $3.5 billion.
  • Last year, the company’s smart speaker division received its first independent financing round at a $2.9 billion value.
  • Baidu’s investment in language learning, voice interaction, and autonomous driving was beset with trouble at the initial stages, capped by the departures of pivotal executives.
  • Baidu still faces threats from upstarts including ByteDance Ltd and newer social platforms such as Douyin, which have gained traffic at the expense of the company’s offerings.

Baidu Inc.’s stock is currently declining. BIDU: NASDAQ is down 4.74%