10 Cheap Internet Stocks to Buy According to Hedge Funds

4. Baidu, Inc. (NASDAQ:BIDU)

Forward P/E: 9.14

Number of Hedge Fund Holders: 50

Baidu, Inc. (NASDAQ:BIDU) is a Chinese Internet search provider. It offers a Chinese-language search platform that allows users to search for information online, including webpages, news, images, and more. Its operations are divided into two segments: the Baidu Core segment and the iQIYI segment. The Baidu Core segment offers products and services categorized as Mobile Ecosystem, Baidu AI Cloud, and Intelligent Driving & Other Growth Initiatives. In contrast, iQIYI functions as an online entertainment service provider.

The company reported a slight year-over-year growth in its Baidu core revenue, reaching RMB27.7 billion. Its AI Cloud business delivered robust revenue growth of 26% year-over-year, primarily driven by the broad market recognition of Baidu, Inc.’s (NASDAQ:BIDU) AI capabilities. The company plans to continue investing in this megatrend to cement its leadership position as an AI innovator.

Baidu, Inc. (NASDAQ:BIDU) is rebuilding the entire product portfolio of its mobile ecosystem with AI, especially in Baidu Search. In addition, the company’s autonomous ride-hailing service, Apollo Go, is also functioning on a viable business model, strengthening its confidence in pursuing global expansion and exploring asset-light business models.