5 Best Global Stocks To Buy Now

2. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 44

Dubbed as “China’s Google”, Baidu, Inc. (NASDAQ:BIDU) provides internet search engine services. As of September 2021, the Chinese internet giant’s Baidu App grew its monthly active users by 12% year over year to 607 million. Baidu, Inc. (NASDAQ:BIDU) is also known for building smart-city infrastructure and transportation systems using its AI cloud services. 

In addition, Baidu, Inc. (NASDAQ:BIDU) is also one of the best diversified global stocks as the company continues to innovate its autonomous driving products and services, Apollo. In its third-quarter earnings report, the company announced that Apollo now has 31 partnerships for self-driving and infotainment solutions.

On November 18, Benchmark analyst Fawne Jiang maintained a Buy rating on Baidu, Inc. (NASDAQ:BIDU) with a price target of $330. At the end of September, 44 funds out of the 867 tracked by Insider Monkey had stakes in Baidu, Inc. (NASDAQ:BIDU), compared to 59 in the previous quarter.

In its Q3 2021 investor letter, Ariel Investments mentioned Baidu, Inc. (NASDAQ:BIDU) and discussed its stance on the firm. Here is what the fund said:

“When we have such a high level of conviction for a company it is not uncommon for us to own it in size across our portfolios. Such is the case with technology giant Baidu, whose leading search engine has been dubbed the “Google of China.” This quarter shares sold off in sympathy with the Chinese internet sector as investors were rattled by the government’s sweeping regulatory crackdown intended to promote “common prosperity” by easing wealth inequality. While we recognize the greater political risk of investing in emerging markets such as China and incorporate an appropriately higher risk premium in the discount rate in our valuation models, we believe Baidu’s business strategy is aligned with national policies and priorities and is therefore not adversely impacted unlike some other players in the internet sector who are in the eye of the storm.

Indeed, the Chinese government recognizes Baidu’s large, upfront investments in many next-generation artificial intelligence (AI) technologies and hails it as a national champion. For example, the company’s Advanced Driving Support System (ADAS), Apollo, has twice as much data on miles driven than any other initiative in the world, giving Baidu (and China) a large lead in the global AI arms race. In addition, Baidu’s cloud offering touts highly differentiated Platform as a Service (PaaS) features and capabilities for a demanding enterprise customer base. While these initiatives are a temporary drag on margins and require long-term execution, their success will bolster China’s “dual circulation” strategy aimed at spurring domestic demand, innovation, and self-reliance.” (Click here to see the full text)