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Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.

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A pesar de las sanciones, los chips de IA de Nvidia se venden en China con descuentos masivos. Descubre cómo el mercado negro sigue activo.

Chips de IA de Nvidia se venden por contrabando con descuentos del 60%

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Citigourp Global Markets 2% Protected Notes Linked To The Djia

China podría mantener sin cambios sus tasas de interés mientras las acciones tecnológicas, incluidas Alibaba (BABA), Baidu y otras, bajan.

¿Qué está pasando con Alibaba (BABA) y otras acciones chinas el martes?

Huawei lanza su chip de IA Ascend 910C, amenazando la participación de Nvidia en el mercado chino. Conoce los posibles impactos.

¿Qué está pasando con las acciones de Nvidia (NVDA) el martes?

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Retail investors can make a bet or take on an opposing view with increased odds of success whenever a market gets too crowded on the long or short side. Like the 2008 financial crisis, when everyone bet in favor of housing only to find out they all had to run for the exit all at once, only a few investors could spot this unfair advantage opportunity.
In today&#39;s stock market, investors can look at this report from Bank of America, which covers the weighing in thematic trades and investments. The most crowded trade is now in the United States&#39; so-called &quot;Magnificent Seven&quot; stocks; the second most crowded trade is shorting Chinese stocks. Now that everyone is rushing to close their shorts, Chinese names like&nbsp;Alibaba Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>)&nbsp;and&nbsp;Baidu Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) have triggered a major short squeeze.
The same could happen if any downturn were to occur in crowded technology stocks like Meta Platforms Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Apple Inc., and even investor favorite Tesla Inc.&nbsp;A rush to exit these names at once could cause what&#39;s termed a pain trade, where most of the participants will be brought to maximum risk tolerance and forced to liquidate and accelerate the selloff.
<h2>Pain Trade #1: Why Tesla Stock Could Be at Risk </h2>
Tesla is riding on two major tailwinds and thesis today. First, the robotaxi unveiling might or might not be here as soon as investors think. Second, the pace of delivery numbers to be released this week places a significant weight on the potential future path of Tesla stock.
The good news for bulls is that China is back online, and Tesla has been expanding its footprint in Asia&#39;s powerhouse. Peers in the region, like NIO Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>) and BYD (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddf#OTC">BYDDF</a>), have both reported record deliveries for the third quarter, with BYD hitting a significant 1 million milestone in deliveries.
Now, here&#39;s the bad news. Tesla stock trades at a price-to-book (P/B) of 12.4x today, compared to NIO stock&#39;s 6.7x and BYD&#39;s 6.4x valuations today. In the United States, most automotive stocks trade at an average P/B valuation of less than 1.5x, which means Tesla&#39;s potential delivery growth might already be priced into the stock today.
This means that, even if delivery numbers are bullish, Tesla has little room to keep moving higher. This is why Wall Street analysts now only forecast $0.63 earnings per share (EPS) in the next 12 months, calling for net growth of 21.1% from today&#39;s $.52.
While this EPS growth may be impressive, the issue of it already being priced into the stock remains. Those at Guggenheim landed on a $153 price target for Tesla stock, calling for as much as 40.1% downside from where the stock trades today. Even the consensus of $209.9 is bad enough to call for an 18.6% downside for Tesla.
<h2>Pain Trade #2: Why Apple Is No Longer a Buffett Favorite</h2>
That&#39;s right. Warren Buffett cut as much as 50% of his stake in Apple stock during the past quarter. While he quoted the sale as being driven by tax efficiency purposes, a deeper reason could be related to the weakening consumer discretionary sector.
With new interest rate cuts coming from the Federal Reserve (the Fed), the dollar is set to weaken, as interest rates are one of the main drivers of currency valuations. This means the U.S. consumer will suffer from even thinner buying power after inflation has already had its round of negative effects on it.
Even though Apple is an international giant able to cushion whatever consumption tailwinds come from the United States, the same reasoning applies when it comes to pricing in this safety and growth potential. Apple stock now trades at 51.6x P/B compared to other peers in the technology space, like Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) and its 6.9x valuation.
Analysts at Barclays now see a valuation of $186 for Apple stock, which calls for a net downside of 17.8% from where the stock trades today. This reiterates the potential for Apple to become a pain trade in the coming months.
<h2>Pain Trade #3: Meta&#39;s Heavy Cash Outlay Mirrors the Metaverse Flop</h2>
In 2022, Meta stock traded down to $90, one of the lowest prices seen since the COVID-19 pandemic. The reason for the crash was the strategy behind the Metaverse, which burned through billions of the company&#39;s free cash flow in a project that never took off.
The same cycle is happening today as Meta looks for new disruptive ideas and technologies to make a new splash; Mark Zuckerberg (Meta&#39;s CEO) has decided to venture into artificial intelligence glasses that could supposedly replace smartphones if done right.
How much cash will Meta burn through this time on this project, and will it have any return? Investors do know that the stock trades at its 52-week high, and analysts at Goldman Sachs don&#39;t think it can break through that ceiling.
With a $555 share price target, Goldman Sachs thinks Meta has a potential downside of 5% from where it trades today. However, that could only be the tip of the iceberg, as the financial impacts of this new project are not yet known.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/why-the-magnificent-7-could-become-a-pain-trade-for-investors/">Why the Magnificent 7 Could Become a Pain Trade for Investors</a>&quot; first appeared on MarketBeat.

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Why the Magnificent 7 Could Become a Pain Trade for Investors

U.S. stocks were mostly lower, with the Dow Jones index falling around 300 points on Thursday.
Shares of AngioDynamics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANGO#NASDAQ">ANGO</a>) fell sharply during Thursday's session following <a href="https://www.benzinga.com/quote/ANGO/earnings">first-quarter results</a>.
AngioDynamics posted first-quarter adjusted loss of 11 cents per share, compared to market estimates of a loss of 15 cents per share. The company's quarterly sales came in at $67.491 million versus expectations of $67.933 million.
AngioDynamics shares dipped 15.6% to $6.45 on Thursday.
Here are some other big stocks recording losses in today's session.
<ul>
<li>Youdao, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAO#NYSE">DAO</a>) shares dipped 14.6% to $5.08.</li>
<li>Ingevity Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NGVT#NYSE">NGVT</a>) shares declined 12.6% to $32.74 as the company said John Fortson has departed as president and CEO and from the board of directors of the company, effective as of Oct. 2.</li>
<li>Hims &amp; Hers Health, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIMS#NASDAQ">HIMS</a>) fell 11.1% to $16.85 in possible sympathy with Eli Lilly after the FDA announced their weight-loss drug shortage has ended.</li>
<li>Levi Strauss &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEVI#NYSE">LEVI</a>) declined 9.1% to $19.14 after the company reported worse-than-expected third-quarter sales results and issued its FY24 adjusted EPS guidance with its midpoint below estimates. The company began a strategic review for its Dockers brand and is exploring a potential sale or other strategic transactions.</li>
<li>Joby Aviation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JOBY#NYSE">JOBY</a>) dipped 8.8% to $5.59. Toyota announced plans to invest $500 million in Joby Aviation.</li>
<li>Bilibili Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) shares fell 8.2% to $27.23. Shares of US-listed Chinese stocks traded lower as the sector pulled back from recent strength. These companies rallied after the People&#8217;s Bank of China announced a new stimulus package ahead of the Golden Week holidays.</li>
<li>Wolfspeed, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) dipped 7.5% to $8.45 after Mizuho downgraded the stock from Neutral to Underperform and cut its price target from $17 to $8.</li>
<li>GDS Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDS#NASDAQ">GDS</a>) fell 6.4% to $21.51.</li>
<li>Weibo Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WB#NASDAQ">WB</a>) dipped 5% to $10.65. Shares of US-listed Chinese stocks traded lower as the sector pulled back from recent strength.</li>
<li>Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) fell 4% to $110.49. Shares of US-listed Chinese stocks traded lower as the sector pulled back from recent strength.</li>
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Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41162047/top-2-tech-and-telecom-stocks-that-are-ticking-portfolio-bombs">Top 2 Tech And Telecom Stocks That Are Ticking Portfolio Bombs</a></li>
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AngioDynamics, Ingevity, Levi Strauss And Other Big Stocks Moving Lower On Thursday

China stocks are taking a breather on Thursday after staging an impressive rally in recent weeks on the back of mounting stimulus optimism. Here&#8217;s a look at <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41159910/these-us-listed-chinese-stocks-set-to-surge-amid-beijings-new-stimulus-plan-citi">what&#8217;s going on</a>.
What To Know: Chinese indices ended their 13-day win steak on Thursday as markets tilted to risk-off amid rising concerns over <a href="https://www.benzinga.com/news/global/24/10/41126038/iran-attacks-israel-with-missiles-middle-east-tensions-escalates-s-p-500-stocks-bitcoin-fall-as-oil">ongoing Middle East tensions</a>, according to <a href="https://www.bloomberg.com/news/articles/2024-10-03/pause-in-china-rally-sparks-wider-drop-in-emerging-market-stocks?srnd=phx-latest&amp;sref=TBDibEcD&amp;embedded-checkout=true">Bloomberg</a>. 
China reportedly added $3.45 trillion in shareholder wealth over the past two weeks as China stocks saw their biggest fund inflows in two decades. 
The surge in Chinese stocks came after China announced its most aggressive stimulus measures since the pandemic and promised that it would deploy &#8220;necessary fiscal spending&#8221; to meet its economic growth target of 5%.
Chinese stocks continued to climb after China announced over the weekend that it would allow for the refinancing of mortgages, giving home buyers immediate benefits from lower interest rates.
The moves out of China represent the country&#8217;s latest attempts to revive an economy that has battled deflationary pressures and growth headwinds due to property declines and wavering consumer confidence.
Several U.S.-listed Chinese stocks are pulling back Thursday including Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>). All of the aforementioned names were down roughly 5% at the time of writing. Despite the pullback, Alibaba and Baidu shares are still up about 40% over the past month, while JD is up about 70% and PDD Holdings is up about 65%. 
China-based EV names were also seeing weakness. NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) was down 5.13% at $6.84, XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) was down 5.17% at $12.65 and Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) was down 4.08% at $26.68 at the time of writing.
Check This Out: <a href="https://www.benzinga.com/opinion/24/10/41126981/chinas-stimulus-creates-huge-bullish-option-trades">China&#8217;s Stimulus Creates Huge Bullish Option Trades</a>
Why It Matters: Bloomberg reported that Chinese markets are reacting to rising concerns over a potentially widening war in the Middle East. The tensions pose several threats to emerging markets, which has dampened optimism around China&#8217;s recent stimulus push. 
"The conflict definitely weighs on sentiment but may have different fundamental impacts across emerging-market countries," said Fredrik Bjelland, portfolio manager of the Skagen Kon-Tiki emerging-market fund. 
"In the short term, I would expect any negative impact to first be geographically linked but on a longer-term horizon to be more fundamentally linked. An elevated risk premium in the oil market could have consequences for import-dependent countries."
Although China stocks are taking a breather on Thursday, analysts largely remain positive. HSBC upgraded Chinese stocks to Overweight, noting that it&#8217;s still &#8220;not too late&#8221; to jump in, while Morgan Stanley suggested China stocks could rally another 10% to 15% from current levels. 
Read Next:
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<li><a href="https://www.benzinga.com/news/24/10/41159016/port-strike-enters-day-3-economist-warns-of-meaningful-impact-if-standoff-prolongs-food-beverages-li">Port Strike Enters Day 3: Economist Warns Of &#8216;Meaningful&#8217; Impact If Standoff Prolongs, Food &amp; Beverages Likely First To Feel The Pinch</a></li>
</ul>
Photo: Shutterstock.

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China Stocks Are Cooling Off Thursday: What's Going On?

Chinese e-commerce juggernaut Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and rival JD.com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) are aggressively fighting for market share in Hong Kong.
The companies waived delivery fees for certain orders and boosted related services like local product returns in Hong Kong, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280951/alibaba-jdcom-take-e-commerce-battle-hong-kong-mainland-china-market-matures?module=Tech%20Trends&amp;pgtype=section" rel="noreferrer noopener">reports</a>.
The stocks are trading lower Thursday after a rally led by <a target="_blank" href="https://www.benzinga.com/government/24/10/41141541/whats-going-on-with-chinese-stocks-alibaba-nio-xpeng-li-auto-on-wednesday" rel="noreferrer noopener">China&#8217;s stimulus plans</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41114632/taiwan-semiconductors-2-nm-breakthrough-puts-taiwan-a-decade-ahead-of-chinas-semiconductor-industry" rel="noreferrer noopener">Taiwan Semiconductor&#8217;s 2-Nm Breakthrough Puts Taiwan a Decade Ahead of China&#8217;s Semiconductor Industry: Report</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/03064544/newplot-1-2.png" alt="" class="wp-image-578288" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/03064544/newplot-1-2.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/03064544/newplot-1-2-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Alibaba committed 1 billion yuan ($142 million) to boost its online retail platform Taobao&#8217;s offerings in Hong Kong. This is part of a campaign to ship orders above 99 yuan for free to one of the city&#8217;s more than 800 self-pickup stations.
JD.com earmarked 1.5 billion yuan to roll out new services in Hong Kong, including free door-to-door deliveries for specific orders above 299 yuan.
E-commerce consultant Jacob Cooke told SCMP that Hong Kong&#8217;s proximity and relatively low e-commerce penetration rate make it an attractive growth market.
Cooke also flagged the higher cost of operating in Hong Kong, which poses a challenge in efficiently scaling logistics.
Due to lackluster domestic demand, Alibaba and its rivals had already waged a price war in China in the e-commerce and cloud businesses.
Price Actions: At the last check on Thursday, BABA stock was down 4.27% at $110.33 in the premarket session. JD was down 4.87%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41120957/alibabas-sun-art-faces-uncertainty-as-trading-suspension-fuels-divestment-rumors-report" target="_blank" rel="noreferrer noopener">Alibaba&#8217;s Sun Art Faces Uncertainty as Trading Suspension Fuels Divestment Rumors: Report</a></li>
</ul>
Image via Shutterstock

Alibaba and JD.com Battle for Hong Kong Shoppers, Stocks Slide After Stimulus Rally

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Shares of US-listed Chinese stocks are trading lower as the sector pulls back from recent strength. These companies rallied after the People's Bank of China announced a new stimulus package ahead of the Golden Week holidays.

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and domestic rival stocks continued their rally since China announced stimulus plans to spur demand. Alibaba peers, including Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), and PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), traded higher on Wednesday.
Last week, <a target="_blank" href="https://www.benzinga.com/news/24/09/41089672/whats-going-on-with-alibaba-stock-on-monday" rel="noreferrer noopener">China&#8217;s central bank</a> shared plans to cut banks&#8217; reserve requirement ratio (RRR) by 50 basis points or half a percentage point and lower the seven-day reverse repurchase rate to 1.5% from 1.7%. Additionally, China agreed to let <a target="_blank" href="https://www.benzinga.com/news/24/09/41097864/china-stocks-jump-as-stimulus-optimism-mounts-whats-going-on" rel="noreferrer noopener">homeowners refinance mortgages</a>.
Shawn Yang of Arete Research and Appaloosa Management founder David Tepper rated Chinese e-commerce juggernaut Alibaba as the key beneficiary of the stimulus. Tepper&nbsp;increased exposure to Alibaba and rival stocks.
In August, China <a target="_blank" href="https://www.benzinga.com/government/24/08/40650893/alibaba-clears-3-year-regulatory-antitrust-scrutiny-stock-gains" rel="noreferrer noopener">signaled an end</a> to its domestic regulatory crackdown on hyperscalars like Alibaba. The Chinese tech companies led by Alibaba have started opening up their &#8220;walled gardens&#8221; to one another to stay clean in the eyes of the regulators.
Chinese electric vehicle stocks, including NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), and ZEEKR Intelligent Technology Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZK#NYSE">ZK</a>), are trading higher on Wednesday, in anticipation of boost in demand from the stimulus package. The companies noted a significant update in their third-quarter and <a href="https://www.benzinga.com/markets/equities/24/10/41114350/chinese-ev-trio-nio-xpeng-li-auto-surge-higher-in-tuesdays-premarket-whats-going-on" target="_blank" rel="noreferrer noopener">September 2024 delivery</a>.
<h2 class="wp-block-heading">Is Alibaba A Good Stock To Buy?</h2>
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.
Alibaba has reported average annual revenue growth of 15.81% over the past 5 years. .
It's also important to pay attention to valuation when deciding whether to buy a stock. Alibaba has a forward P/E ratio of 13.12. This means investors are paying $13.12 for each dollar of expected earnings in the future. The average forward P/E ratio of Alibaba peers is 20.7.
Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out <a href="https://pro.benzinga.com">Benzinga PRO</a>. 
Price Actions: At the last check on Wednesday, BABA stock was up 2.76% at $115.84 premarket. PDD was up 4.59%, JD was up 8.83%, BIDU was up 5.91%, NIO was up 6.40%, XPEV was up 6.46%, LI was up 7.17%, and ZK was up 10.50%.
Photo by Oleg Elkov via Shutterstock

What's Going On With Chinese Stocks Alibaba, NIO, XPeng, Li Auto On Wednesday?

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Shares of US-listed Chinese stocks are trading higher on continued strength following recent stimulus measures and the start of the National Day Golden Week.

Shares of US-listed Chinese stocks are trading higher on continued strength following recent stimulus measures and amid the China National Day celebrations this week.

Jim Cramer on Monday commented on <a href="https://www.benzinga.com/topic/china">China&#8217;s proposed stock stabilization</a> fund, speculating on potential investments in Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>).
Cramer tweeted, &#8220;I love it when Chinese Communists start a stock stabilization fund. Who gets that call? Who knows if they are going to use futures? Maybe buy some Baidu? How about JD? It would be hilarious if it weren&#8217;t true.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I love it when Chinese Communists start a stock stabilization fund. Who gets that call? Who knows if they are going to use futures? Maybe buy some Baidu? How about JD? It would be hilarious if it weren&#39;t true
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1840674053733875835?ref_src=twsrc%5Etfw">September 30, 2024</a></blockquote>
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This provocative statement comes as China plans to inject at least 800 billion yuan ($113 billion) into its beleaguered equity markets, aiming to reinvigorate a struggling economy.
The proposed stabilization fund is expected to provide much-needed support for Chinese stocks, creating a buzz among investors. 
Both Baidu and JD have emerged as attractive options, given their recent performance and the potential tailwinds from government intervention.
<h2 class="wp-block-heading">Baidu Stock: Resilience &amp; Potential Upside</h2>
Baidu stock has shown resilience. Its share price is currently at $105.55, comfortably above its eight, 20, and 50-day simple moving averages.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="459" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101915/Screenshot-2024-10-01-at-7.47.30-PM.png" alt="" class="wp-image-574805" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101915/Screenshot-2024-10-01-at-7.47.30-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101915/Screenshot-2024-10-01-at-7.47.30-PM-300x219.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100124&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>
<a href="https://www.benzinga.com/report/BIDU">Analysts project a</a> 12-month price target for Baidu stock ranging from $105 to $139, with an average of $122.
However, the stock is currently facing selling pressure, which raises concerns about short-term volatility.
<h2 class="wp-block-heading">JD&#8217;s Strong Performance, Future Outlook</h2>
Meanwhile, JD stock is trading at $41.15 and displays a bullish trend, with its price above all key moving averages.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="459" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101919/Screenshot-2024-10-01-at-7.47.20-PM.png" alt="" class="wp-image-574808" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101919/Screenshot-2024-10-01-at-7.47.20-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/01101919/Screenshot-2024-10-01-at-7.47.20-PM-300x219.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100124&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>
Read Also: <a href="https://www.benzinga.com/news/24/09/41098397/why-jd-com-stock-is-up-27-over-the-past-week">Why JD.Com Stock Is Up 27% Over The Past Week</a>
<a href="https://www.benzinga.com/report/JD">Analysts estimate a</a> 12-month price target for JD stock between $28.00 and $47.00, averaging $37.50. Similar to Baidu, JD is experiencing selling pressure, which could impact future performance.
As China ramps up its efforts to stabilize the market, both Baidu and JD could benefit significantly from these initiatives. While Cramer&#8217;s commentary adds intrigue, investors should remain cautious and consider the inherent risks of investing in Chinese equities amidst ongoing economic uncertainty. 
The stabilization fund may provide a lifeline, but careful evaluation of both stocks&#8217; fundamentals and market conditions is essential before making investment decisions.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41097864/china-stocks-jump-as-stimulus-optimism-mounts-whats-going-on">China Stocks Jump As Stimulus Optimism Mounts: What&#8217;s Going On?</a></li>
</ul>
Photo: Shutterstock

Asia

Technicals

Baidu, JD In Focus As Jim Cramer Weighs In On China's Stock Stabilization Fund

Investors with a lot of money to spend have taken a bullish stance on Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with BIDU, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 16 uncommon options trades for Baidu.
This isn't normal.
The overall sentiment of these big-money traders is split between 50% bullish and 31%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $591,412, and 11 are calls, for a total amount of $604,637.
<h3>Predicted Price Range</h3>
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $87.0 and $135.0 for Baidu, spanning the last three months.
<h3>Volume &amp; Open Interest Trends</h3>
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Baidu's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Baidu's whale trades within a strike price range from $87.0 to $135.0 in the last 30 days. 
<h3>Baidu Option Volume And Open Interest Over Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727795766_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>10/11/24</td>
<td>$16.65</td>
<td>$15.9</td>
<td>$15.95</td>
<td>$121.00</td>
<td>$334.9K</td>
<td>0</td>
<td style="text-align: right;">210</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>03/21/25</td>
<td>$5.45</td>
<td>$5.15</td>
<td>$5.3</td>
<td>$135.00</td>
<td>$107.0K</td>
<td>2.6K</td>
<td style="text-align: right;">147</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$25.5</td>
<td>$23.3</td>
<td>$25.5</td>
<td>$120.00</td>
<td>$91.8K</td>
<td>180</td>
<td style="text-align: right;">36</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/11/24</td>
<td>$14.75</td>
<td>$14.4</td>
<td>$14.75</td>
<td>$120.00</td>
<td>$81.1K</td>
<td>1</td>
<td style="text-align: right;">55</td>
</tr>
<tr>
<td>BIDU</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>11/15/24</td>
<td>$3.25</td>
<td>$3.1</td>
<td>$3.25</td>
<td>$120.00</td>
<td>$74.4K</td>
<td>6.6K</td>
<td style="text-align: right;">1</td>
</tr>
</tbody>
</table>

<h3>About Baidu</h3>
Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Following our analysis of the options activities associated with Baidu, we pivot to a closer look at the company's own performance.
<h3>Baidu's Current Market Status</h3>
<ul>
<li>Currently trading with a volume of 1,760,774, the BIDU's price is up by 1.15%, now at $106.5. </li>
<li>RSI readings suggest the stock is currently may be overbought.</li>
<li>Anticipated earnings release is in 49 days.</li>
</ul>
<h3>What Analysts Are Saying About Baidu</h3>
In the last month, 2 experts released ratings on this stock with an average target price of $102.5.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. <a href="https://www.benzinga.com/premium/ideas/options-moneyline-2/?t=Moop1arja3be22op14&amp;utm_source=benzinga-insights">Click here for access</a>. 
&#x2A; An analyst from Susquehanna has decided to maintain their Positive rating on Baidu, which currently sits at a price target of $105. 
&#x2A; An analyst from HSBC has revised its rating downward to Hold, adjusting the price target to $100. 
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Baidu, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

What the Options Market Tells Us About Baidu

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders often look for circumstances when the market estimation of an option diverges away from its normal worth. Abnormal amounts of trading activity could push option prices to hyperbolic or underperforming levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>RDDT</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$66.00</td>
<td>$40.2K</td>
<td>847</td>
<td>5.7K</td>
</tr>
<tr>
<td>META</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/04/24</td>
<td>$570.00</td>
<td>$35.9K</td>
<td>1.8K</td>
<td>4.0K</td>
</tr>
<tr>
<td>BILI</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$24.00</td>
<td>$42.0K</td>
<td>10.8K</td>
<td>2.0K</td>
</tr>
<tr>
<td>BIDU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$100.00</td>
<td>$31.3K</td>
<td>547</td>
<td>878</td>
</tr>
<tr>
<td>DJT</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>10/18/24</td>
<td>$15.50</td>
<td>$38.6K</td>
<td>145</td>
<td>298</td>
</tr>
<tr>
<td>VZ</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>03/21/25</td>
<td>$45.00</td>
<td>$27.9K</td>
<td>353</td>
<td>193</td>
</tr>
<tr>
<td>ROKU</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>10/18/24</td>
<td>$80.00</td>
<td>$29.2K</td>
<td>594</td>
<td>82</td>
</tr>
<tr>
<td>RBLX</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$47.50</td>
<td>$25.4K</td>
<td>2.9K</td>
<td>40</td>
</tr>
<tr>
<td>TMUS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>10/25/24</td>
<td>$200.00</td>
<td>$25.9K</td>
<td>27</td>
<td>32</td>
</tr>
<tr>
<td>NFLX</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$720.00</td>
<td>$50.7K</td>
<td>358</td>
<td>17</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These bullet-by-bullet explanations have been constructed using the accompanying table. 
• Regarding RDDT (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), we observe a put option sweep with bearish sentiment. It expires in 18 day(s) on October 18, 2024. Parties traded 115 contract(s) at a $66.00 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $40.2K, with a price of $350.0 per contract. There were 847 open contracts at this strike prior to today, and today 5771 contract(s) were bought and sold. 
• For META (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), we notice a put option sweep that happens to be bearish, expiring in 4 day(s) on October 4, 2024. This event was a transfer of 51 contract(s) at a $570.00 strike. This particular put needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $35.9K, with a price of $702.0 per contract. There were 1810 open contracts at this strike prior to today, and today 4028 contract(s) were bought and sold. 
• For BILI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>), we notice a call option sweep that happens to be bullish, expiring in 109 day(s) on January 17, 2025. This event was a transfer of 98 contract(s) at a $24.00 strike. This particular call needed to be split into 19 different trades to become filled. The total cost received by the writing party (or parties) was $42.0K, with a price of $440.0 per contract. There were 10828 open contracts at this strike prior to today, and today 2084 contract(s) were bought and sold. 
• Regarding BIDU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), we observe a put option sweep with bearish sentiment. It expires in 18 day(s) on October 18, 2024. Parties traded 145 contract(s) at a $100.00 strike. This particular put needed to be split into 22 different trades to become filled. The total cost received by the writing party (or parties) was $31.3K, with a price of $216.0 per contract. There were 547 open contracts at this strike prior to today, and today 878 contract(s) were bought and sold. 
• Regarding DJT (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>), we observe a call option sweep with bearish sentiment. It expires in 18 day(s) on October 18, 2024. Parties traded 183 contract(s) at a $15.50 strike. This particular call needed to be split into 10 different trades to become filled. The total cost received by the writing party (or parties) was $38.6K, with a price of $211.0 per contract. There were 145 open contracts at this strike prior to today, and today 298 contract(s) were bought and sold. 
• Regarding VZ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), we observe a put option trade with bearish sentiment. It expires in 172 day(s) on March 21, 2025. Parties traded 100 contract(s) at a $45.00 strike. The total cost received by the writing party (or parties) was $27.9K, with a price of $279.0 per contract. There were 353 open contracts at this strike prior to today, and today 193 contract(s) were bought and sold. 
• For ROKU (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), we notice a put option sweep that happens to be bullish, expiring in 18 day(s) on October 18, 2024. This event was a transfer of 45 contract(s) at a $80.00 strike. This particular put needed to be split into 3 different trades to become filled. The total cost received by the writing party (or parties) was $29.2K, with a price of $650.0 per contract. There were 594 open contracts at this strike prior to today, and today 82 contract(s) were bought and sold. 
• For RBLX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>), we notice a put option trade that happens to be bearish, expiring in 81 day(s) on December 20, 2024. This event was a transfer of 40 contract(s) at a $47.50 strike. The total cost received by the writing party (or parties) was $25.4K, with a price of $635.0 per contract. There were 2932 open contracts at this strike prior to today, and today 40 contract(s) were bought and sold. 
• Regarding TMUS (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), we observe a call option trade with bearish sentiment. It expires in 25 day(s) on October 25, 2024. Parties traded 27 contract(s) at a $200.00 strike. The total cost received by the writing party (or parties) was $25.9K, with a price of $960.0 per contract. There were 27 open contracts at this strike prior to today, and today 32 contract(s) were bought and sold. 
• For NFLX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), we notice a call option trade that happens to be bullish, expiring in 81 day(s) on December 20, 2024. This event was a transfer of 12 contract(s) at a $720.00 strike. The total cost received by the writing party (or parties) was $50.7K, with a price of $4230.0 per contract. There were 358 open contracts at this strike prior to today, and today 17 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

NFLX

RBLX

RDDT

ROKU

TMUS

10 Communication Services Stocks With Whale Alerts In Today's Session

Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) shares are trading higher by 15.0% to $106.29 over the trailing week, driven by investor enthusiasm over the latest <a href="https://www.benzinga.com/markets/asia/24/09/41011343/tech-stocks-rise-materials-sector-rallies-on-chinas-stimulus-nvidia-surges-whats-driving-markets-tue">economic stimulus</a> measures implemented by the People's Bank of China (PBoC) and a surprisingly strong Purchasing Managers' Index (PMI) report.
The rally comes as investors look forward to how China's economic policies could fuel growth for major tech companies like Baidu, which has been at the forefront of China&#8217;s AI revolution.
What Happened: The PBoC unveiled aggressive monetary easing measures in response to growing concerns about the slowing Chinese economy, including a 50-basis-point cut to the reserve requirement ratio (RRR) for commercial banks, which effectively released 1 trillion yuan ($140 billion) into the banking system. 
This is expected to boost liquidity and promote lending, which is especially crucial for large-cap companies like Baidu, given its strategic position in China&#8217;s tech sector. In addition, the PBoC also slashed the seven-day repo rate by 20 basis points to 1.5%, signaling that Chinese policymakers are committed to stabilizing the economic slowdown.
Read Also: <a href="https://www.benzinga.com/news/24/09/41085958/fed-chair-jerome-powell-set-to-speak-as-economists-raise-concerns-over-risks-arising-from-potential">Fed Chair Jerome Powell Set To Speak As Economists Raise Concerns Over Risks Arising From Potential Policy Missteps And 2024 Election</a>
The central bank's policy shift, which occurred alongside reports that China plans to issue up to $284 billion in sovereign debt for additional stimulus, has raised hopes that broader fiscal support is on the horizon. 
For Baidu, these developments offer a favorable backdrop, as the company&#8217;s revenue streams from its core AI, cloud services, and autonomous driving sectors could benefit from an uptick in economic activity fueled by increased liquidity.
What Else: Baidu's dominant position in China's AI landscape has made it a key beneficiary of government policies focused on digital innovation. The company's Apollo platform, which leads China's autonomous vehicle technology, and its AI-driven cloud computing division, both stand to gain from the increased lending capabilities of commercial banks. 
The rally in Baidu's stock was further supported by positive economic data. China's official PMI for September beat expectations, registering at 50.2, up from August's reading of 49.7, signaling an expansion in manufacturing activity, despite continued declines in factory output. 
This stronger-than-anticipated PMI raised hopes that the worst of China's economic struggles may be abating, even as factory output contracted for the fourth consecutive month. Investors are interpreting this data as an early indicator that recent stimulus efforts could be gaining traction, heightening expectations for further fiscal measures from Beijing.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/09/41096388/hurricane-helene-102-dead-2-million-without-power-after-storm-destruction-in-6-states">Hurricane Helene: 102 Dead, 2 Million Without Power After Storm Destruction In 6 States</a>
<h2 class="wp-block-heading">How To Buy BIDU Stock</h2>
By now you're likely curious about how to participate in the market for Baidu &#8211; be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so. 
In the the case of Baidu, which is trading at $108.55 as of publishing time, $100 would buy you 0.92 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, BIDU has a 52-week high of $135.81 and a 52-week low of $79.69.

Why Baidu Stock Is Rising Today

Chinese stocks continue to rebound Monday following years of underperformance after China said it would allow homeowners to refinance mortgages, the latest move in a string of measures aimed at <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41032804/chinas-stimulus-sparks-optimism-3-large-cap-stocks-with-analyst-buy-ratings">supporting its struggling economy</a>.
What To Know: China on Sunday announced that it would allow for the refinancing of mortgages by home buyers, according to a <a href="https://www.wsj.com/world/china/china-to-allow-home-buyers-to-refinance-mortgages-in-latest-easing-move-2d3eeb4a?mod=livecoverage_web">report</a> from the Wall Street Journal.
The report indicates that the move could help recent policy changes more effectively filter through to the markets. Before the mortgage refinancing measures were announced, home buyers were unable to reap immediate benefits from lower interest rates. 
&#8220;Shortcomings in the current mortgage interest-rate pricing mechanism have become apparent, the public reaction has been quite strong and the need to adjust and optimize is urgent,&#8221; China&#8217;s central bank reportedly said in a statement.
Under new rules, borrowers will be able to refinance home loans using prevailing market rates for new mortgages if the difference between their rate and current market rates reach a &#8220;certain magnitude.&#8221; Further details on the threshold were not shared.
The People's Bank of China reportedly said that the new measures will go into effect on Nov. 1.
See Also: <a href="https://www.benzinga.com/markets/equities/24/09/41096388/hurricane-helene-102-dead-2-million-without-power-after-storm-destruction-in-6-states">Hurricane Helene: 102 Dead, 2 Million Without Power After Storm Destruction In 6 States</a>
The <a href="https://www.benzinga.com/topic/hang-seng-index">Hang Seng</a> jumped 2% on Monday after rising about 13% last week and the Shanghai Composite soared approximately 8%. Several U.S.-listed Chinese stocks also surged following the announcement. 
Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) was up 2.05% at $109.51, JD.com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) was up 3.57% at $41.32, PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) was up 2.47% at $138.72, Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) was up 2.33% at $107.61, Bilibili Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) was up 5.85% at $24.26 and KE Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NYSE">BEKE</a>) was up 8.2% at $21.64. 
China-based EV names were also getting a boost from the announcements over the weekend including NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), up 8.97% at $7.10, and Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), up 3.47% at $26.67. 
The news over the weekend comes after China announced its most aggressive stimulus measures since the pandemic last week and promised that it would deploy "necessary fiscal spending" to meet its economic growth target of 5%. 
The moves out of China mark the country's latest attempts to revive an economy that has battled deflationary pressures and growth headwinds due to property declines and wavering consumer confidence.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/09/41082440/chinese-stocks-dominate-jd-com-and-temu-parent-pdd-are-among-top-10-large-cap-gainers-last-week-se">Chinese Stocks Dominate &#8211; JD.com And Temu Parent PDD Are Among Top 10 Large Cap Gainers Last Week (Sept 23-Sept 27): Are The Others In Your Portfolio?</a></li>
</ul>
Photo: Shutterstock.

China Stocks Jump As Stimulus Optimism Mounts: What's Going On?

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Shares of US-listed Chinese companies are trading higher on continued strength amid stimulus efforts. September PMI data beat estimates but factory activity fell, which may raise stimulus hopes.

Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), also known as China&#8217;s tech barometer, continued to trade higher on Monday as China shared its <a target="_blank" href="https://www.benzinga.com/government/24/09/41065178/whats-going-on-with-chinese-ev-stocks-nio-xpeng-zeekr-on-friday" rel="noreferrer noopener">stimulus plans last week</a>.
China&#8217;s central bank&nbsp;plans to cut banks&#8217; reserve requirement ratio (RRR) by 50 basis points or half a percentage point. It also plans to lower the seven-day reverse repurchase rate to 1.5% from 1.7%.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/41045187/alibaba-follows-amazon-and-walmart-pours-5-7b-into-holiday-sales-push" rel="noreferrer noopener">Alibaba Follows Amazon And Walmart, Pours $5.7B Into Holiday Sales Push</a>
Shawn Yang of Arete Research <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280270/alibaba-looks-course-turnaround-amid-renewed-investor-frenzy-chinese-stocks" rel="noreferrer noopener">told</a> SCMP that he expects Alibaba, China&#8217;s leading e-commerce stock, to be the prime beneficiary of the stimulus.
As per Yang, Alibaba&#8217;s cloud services&nbsp;and international expansion further enhance its position. Recent reports indicated that Alibaba is collaborating with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to boost the&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/09/41023040/nvidia-xpeng-join-alibabas-apsara-conference-to-showcase-ai-tech-advancements" rel="noreferrer noopener">autonomous driving&nbsp;experience</a> of Chinese smart vehicle companies like Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>). Alibaba also partnered with XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>).
Appaloosa Management founder David Tepper ramped up exposure to China through Alibaba, JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>),&nbsp;Baidu&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), as per a CNBC <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280270/alibaba-looks-course-turnaround-amid-renewed-investor-frenzy-chinese-stocks" rel="noreferrer noopener">interview</a>. JD.com, Baidu, and PDD stocks are also trading up on Monday.
Last week, &nbsp;Alibaba and JD.com <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/41066338/alibaba-jd-com-strike-deal-to-open-ecosystems-amid-slowing-growth-and-chinas-antitrust-pressure" rel="noreferrer noopener">opened their walled gardens</a> to combat the slowdown in demand. Taobao and Tmall platforms integrated JD.com&#8217;s logistics services.
JD.com agreed to leverage Alibaba&#8217;s logistics network Cainiao Global Express and Cainiao Stations and added Alipay, Alibaba&#8217;s fintech arm, as a payment option.
Alibaba stock gained 20% in the last 5 days. Investors can gain exposure to the stock through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: BABA stock is up 4.16% at $111.79 premarket at the last check Monday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/09/41073117/apples-reviews-strategy-cuts-film-budgets-after-blockbuster-spend-whats-next-for-apple-tv" target="_blank" rel="noreferrer noopener">Apple&#8217;s Reviews Strategy, Cuts Film Budgets After Blockbuster Spend &#8211; What&#8217;s Next for Apple TV+?</a></li>
</ul>
Image by zhu difeng on Shutterstock

AVEM

What's Going On With Alibaba Stock On Monday?

U.S. stocks appear on track to start the new week on the back foot, with index futures modestly lower early Monday. As the S&amp;P 500 trades slightly shy of its record high, traders may show reluctance to add to their positions, especially ahead of the week&#8217;s labor market data. Regional manufacturing activity data and speeches by Federal Reserve officials, including one from Chair<a href="https://www.benzinga.com/news/24/09/41085958/fed-chair-jerome-powell-set-to-speak-as-economists-raise-concerns-over-risks-arising-from-potential"> Jerome Powell</a>, could also have a bearing on the trading direction.
Sentiment may be marred by the looming strike by the International Longshoremen&#8217;s Association that is expected to stall activity in ports from New England to Texas, potentially crippling supply chains. In a note to clients, fund manager Louis Navellier said, &#8220;Even a two-week Longshoreman strike would disrupt holiday sales and supply chains for drugs and other essential products.&#8221;
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.10%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.05%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.08%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.53%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Monday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) eased 0.03% to $571.29 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.04% to $486.55, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Week:
U.S. stocks rose for a third straight week as traders bet on the continuation of the rally into the fourth quarter as the Fed delivers on its promise. The Chinese efforts to stimulate the economy set in motion buying in China-exposed stocks, while positive reaction to Micron Technology, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) earnings boosted the tech space.
The Dow Industrials finished the week at fresh intraday and closing highs, while the S&amp;P 500 settled just shy of its all-time highs.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Weekly Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.95%</td>
<td>18,119.59</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.63%</td>
<td>5,738.17</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.59%</td>
<td>42,313.00</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.14%</td>
<td>2,224.70</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The solid September gains bring both good and bad news for the market, according to Carson Group Chief Investment Strategist Ryan Detrick. The S&amp;P 500 Index is close to clocking gains of 20% year-to-date heading into October for the first time since 1997, the strategist said. When this had happened in the past, the index was down seven of the nine times. Despite the October weakness, the fourth quarter returned 4.1% on average in these years, he added.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">S&amp;P 500 with a shot at being up 20% YTD heading into October for the first time since 1997. That&#39;s the good news. The bad news? Oct lower 7 of 9 times that&#39;s happened. Still, Q4 with a solid median return of 4.1% when all is said and done says don&#39;t lose faith now. <a href="https://t.co/rkD3uXVGGo">pic.twitter.com/rkD3uXVGGo</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1840412404498272554?ref_src=twsrc%5Etfw">September 29, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<figcaption class="wp-element-caption">Tech bull Daniel Ives is very optimistic about the tech stocks continuing to shine. &#8220;We believe the stage is set for tech stocks to move 10%+ higher into year-end and another 20% in 2025 with this tech bull market just hitting its next phase led by the AI Revolution,&#8221; he said. The overall AI infrastructure market opportunity could grow ten times from presently through 2027, he said.</figcaption></figure>
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures </a>
Upcoming Economic Data:
A quartet of employment reports, including the non-farm payrolls data for September, ADP private payrolls data, the August Job Openings and Labor Turnover survey data and the weekly jobless claims, are among the key data releases for the week. Traders may also focus on a few private sector activity reports scheduled for the week.
<ul>
<li>On Monday Federal Reserve Governor Michelle Bowman is scheduled to speak at 8:50 a.m. EDT.</li>
<li>ISM-Chicago is due to release the results of its regional manufacturing survey at 9:45 a.m. EDT. The Chicago business barometer is expected to show a reading of 45.3 for September, down from 46.1 in August, suggesting a faster rate of contraction.</li>
<li>The Treasury will auction three- and six-month bills at 11:30 a.m. EDT.</li>
<li>Powell will address the National Association for Business Economics,&nbsp;in Nashville, Tennessee, at 1:55 p.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Carnival Corporation &amp; plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) is scheduled to <a href="https://www.benzinga.com/calendars/earnings">announce its quarterly results ahead of the market opening.</a></li>
<li>Crypto-linked stocks pulled amid the softness seen in digital currencies. MicroStrategy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) and Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) fell over 5.70% and 4.40%, respectively, <a href="https://www.benzinga.com/premarket">in premarket trading</a>.</li>
<li>Chinese EV startup Nio, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) climbed over 13% after the company announced additional financing from strategic investors. The shares also reacted to the optimism regarding China&#8217;s stimulus measures. Peers XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) and Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) rose over 8.40% and 7.50%, respectively.</li>
<li>Other U.S.-listed Chinese stocks such as Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) and Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) also rallied.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell modestly and traded under $68, while gold futures, though trading off the record highs, are modestly higher. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slipped over 3% over the past 24 hours and traded around $63.6K. The yield on the 10-year Treasury edged up slightly to 3.779%.
The major Asian markets closed on a mixed note, with the Japanese market plunging 4.80% as 67-year-old&nbsp;Shigeru Ishiba is all set to take over as prime minister after he was elected to lead the Liberal Democratic Party. <a href="https://www.benzinga.com/markets/asia/24/09/41084907/japans-nikkei-plummets-over-2-000-points-amid-change-of-guard-while-chinese-market-extends-stimulus">Uncertainty over his fiscal and monetary policies led to the unraveling of bets,</a> reports said. The Indian, South Korean, Taiwanese, Indonesian and New Zealand markets also advanced.
On the other hand, China&#8217;s key market gauge rallied over 8% after domestic private sector activity data came in weaker than expected, raising hopes of additional stimulus measures. The Hong Kong market also rallied strongly, while the Australian and Singaporean markets rose, although by a much more modest magnitude.
Sentiment across the Atlantic is negative, with most major markets in Europe trading firmly in the red in early trading.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/41086120/us-market-soars-after-fed-rate-cut-but-chartist-warns-of-potential-stock-plunge-citing-this-clas">US Market Soars After Fed Rate Cut, But Chartist Warns Of Potential Stock Plunge Citing This Classic Sell Signal</a></li>
</ul>
Image Via Shutterstock

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US Stocks Set For Flattish Start As Traders Eye Job Data, Jerome Powell Speech And Looming Dock Workers' Strike: Top Analyst Says 'Stage Is Set' For Tech Stocks To Move Higher

Last week, China's central bank&nbsp;shared plans to cut banks' reserve requirement ratio (RRR) by 50 basis points or half a percentage point, boosting US-listed Chinese companies' <a target="_blank" href="https://www.benzinga.com//node/41065178" rel="noreferrer noopener">stocks&nbsp;across sectors</a>.
These ten large-cap stocks were the best performers in the last week. Are they in your portfolio?
<ol>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) shares rocketed 39.75% after the People's Bank of China announced a reduction in the amount of cash banks need to hold and outlined plans <a href="https://www.benzinga.com//node/41062614" target="_blank" rel="noreferrer noopener">to support the struggling property market</a>.</li>
<li>KE Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NYSE">BEKE</a>) stock jumped 39.18% following a report suggesting China will issue up to $284 billion of sovereign debt as part of a stimulus.</li>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) shares upped 35.52%, probably following a report suggesting that China will issue up to&nbsp;$284 billion&nbsp;in <a href="https://www.benzinga.com//node/41026720" target="_blank" rel="noreferrer noopener">sovereign debt as part of a stimulus</a>.</li>
<li>Liberty Broadband Corporation's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBRDA#NASDAQ">LBRDA</a>) stock increased 31.74% after the company announced it had communicated a counterproposal to the special committee of the board of directors of&nbsp;<a href="https://www.benzinga.com//node/41015233" target="_blank" rel="noreferrer noopener">Charter Communications, Inc.</a><a href="https://www.benzinga.com//node/41015233" target="_blank" rel="noreferrer noopener"> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>)</a>.&nbsp;</li>
<li>Yum China Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NYSE">YUMC</a>) stock upped 27.64% on China's stimulus.</li>
<li>H World Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTHT#NASDAQ">HTHT</a>) stock upped 26.43% on pin action in Chinese stocks.</li>
<li>Trip.com Group Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>) stock gained 26.02% in the last week on pin action in Chinese stocks.</li>
<li>Nio Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) gained 23.48% last week, joining the rally in Chinese stocks, which was boosted by the government stimulus plans.</li>
<li>Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) stock upped 22.47% following Morgan Stanley's upgrade from Equal-Weight to Overweight <a href="https://www.benzinga.com/quote/WYNN/analyst-ratings" target="_blank" rel="noreferrer noopener">and raising the price target</a> from $97 to $104.</li>
<li>Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) gained 21.95% by joining the rally in Chinese stocks, which got a boost from the government stimulus plans.</li>
</ol>
Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) also joined the Chinese stock rally last week, each gaining over 20%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/09/41082509/regeneron-pharma-super-micro-computer-and-global-payments-are-among-top-10-large-cap-losers-last-w">Regeneron Pharma, Super Micro Computer And Global Payments Are Among Top 10 Large Cap Losers Last Week (Sept 23-Sept 27): Are The Others In Your Portfolio?</a></li>
</ul>
Photo by Eric Prouzet on Unsplash

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Chinese Stocks Dominate - JD.com And Temu Parent PDD Are Among Top 10 Large Cap Gainers Last Week (Sept 23-Sept 27): Are The Others In Your Portfolio?

Even though the Chinese stock market has been scrutinized extensively in the past couple of years, some investors have begun to realize that there is much more upside than apparent risk for Asia&#39;s powerhouse. China&#39;s technology sector has the lowest valuation in history compared to its American counterpart.
Measured through the KraneShares CSI China Internet ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kweb#NYSE">KWEB</a>), names in this space now trade at steep discounts against peers like Alphabet Inc. and even Amazon.com Inc.. While discounted stocks might not look attractive to some investors based on their price action, others recognize the value to be had in them.
This is why stocks like Alibaba Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), Baidu Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>), and the overall iShares MSCI China ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>) have delivered shareholders a significant rally this week, one of the best performances since the few months after the COVID-19 pandemic. Retail investors can also feel a bit safer because some of Wall Street&#39;s favorite investors have also given these companies a chance to make billions.
<h2>Chinese Government Interventions Improve the Risk-Reward Balance for Investors</h2>
Recently, the Federal Reserve (the Fed) in the United States decided to lower interest rates by half a percent, or 50 basis points. The Chinese economy has been criticized long enough for its slowdown and contractions, so the government has also decided to cut rates by the same amount.
The difference is that the Chinese ETF trades at only 47% of the high prices it made in early 2021, while the technology-focused NASDAQ 100 index trades at 96% of its 52-week high now. This means that the potential reward is much bigger in China than the pullback the U.S. technology space could make after these runs.
Stanley Druckenmiller decided to sell out of NVIDIA Co. after realizing the potential upside was no longer that attractive; it is no surprise to see his former mentor and boss George Soros initiate a&nbsp;$73.4 million position in Alibaba.
As lower rates start to spread through the Chinese economy, the consumer discretionary sector and rate-dependent technology companies will probably see the benefits first, so they have become the top choice for other mega investors as well.
<h2>Who&#39;s Buying Chinese Stocks Now and What They&#39;re Adding to Their Portfolios</h2>
Some investors would recognize him for predicting the 2008 financial crisis, but Michael Burry has now made Alibaba his top holding. After buying it for the better part of 2024, Burry&#39;s portfolio is now reported to hold up to 155,000 shares valued at roughly $14.8 million today.
The trend doesn&#39;t end there for Burry, as he also chose Baidu as his fourth-largest position, with 75,000 shares valued at approximately $9 million. Coming right after Baidu, Burry chose JD.com Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) to be his fifth-largest position, with 250,000 shares carrying a value of $8.3 million today.
Those names are the common choice among investors today. David Tepper has recently deviated from his typical picks in the financial and technology sector to pick on Chinese stocks. For Tepper, his fund bought up to 10,500,000 shares for an approximate value of just over $1 billion in the portfolio.
Considering that Alibaba trades at less than a third of the $316 a share high it made after COVID-19, it makes sense for these investors to look at the potential risk-to-reward ratios and decide if it is worth taking a risk on Chinese stocks.
<h2>Wall Street&#39;s Latest Take on Alibaba and Baidu: Key Insights for Investors</h2>
Starting with Alibaba, analysts now justify a consensus price target of $107.6 a share on the stock, calling for 12.7% upside from where it trades today. However, those at Susquehanna decided to go above and beyond the consensus and place a $130 valuation on Alibaba, implying it could run by a much bigger 35.4% from today&#39;s price.
When it comes to Baidu, the stock trades at only 68% of its 52-week high to offer enough potential upside to consider it. This is why analysts at Citigroup see a potential case for the stock to trade as high as $155 a share, daring the stock to stage a massive 64.8% rally from where it has traded down to today.
Here are other insights for investors to consider: Alibaba&#39;s main competitor could be assumed to be Amazon, which is why the Chinese giant&#39;s 25.1x P/E ratio means a significant discount to Amazon&#39;s 46.0x valuation today. For Baidu, competition can only arguably be found in shares of Google.
Baidu&#39;s 12.4x P/E valuation would also offer investors a steep discount compared to Google&#39;s valuation of 23.3x P/E today, despite a recent selloff in that stock. When it comes to upside and diminished risk, investors all over are finding Chinese stocks to be the winners; maybe retail investors should, too.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/chinese-tech-stocks-rally-whats-behind-it-and-next-steps/">China&#39;s Tech Stocks Surge: What Top Investors Know That You Don&#39;t</a>&quot; first appeared on MarketBeat.

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MCHI

China's Tech Stocks Surge: What Top Investors Know That You Don't

Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) shares are trading higher by some 22% to $106.09 this week, fueled by a confluence of favorable <a href="https://www.benzinga.com/markets/asia/24/09/41011343/tech-stocks-rise-materials-sector-rallies-on-chinas-stimulus-nvidia-surges-whats-driving-markets-tue">macroeconomic developments</a> in China and optimism surrounding the company's future growth prospects. 
This week&#8217;s gain comes after the People's Bank of China (PBoC) announced aggressive monetary easing measures, which are expected to have wide-ranging positive effects on Chinese tech companies.
What Happened: The PBoC's decision to cut the reserve requirement ratio (RRR) for banks by 50 basis points, from 10.0% to 9.5%, is one of the most substantial easing measures seen in recent years. The move will inject approximately 1 trillion yuan ($140 billion) into the banking system, freeing up liquidity for lending and stimulating economic activity.
In addition, the central bank slashed both the seven-day repo rate and the 14-day reverse repo rate, further emphasizing its commitment to reviving China's economy, which has been under pressure from a property market slowdown and declining consumer confidence.
Read Also: <a href="https://www.benzinga.com/news/econ-s/24/09/41066122/feds-preferred-inflation-gauge-comes-in-below-expectations-for-august-easing-concerns-about-rising-p">Fed&#8217;s Preferred Inflation Gauge Comes In Below Expectations For August, Easing Concerns About Rising Prices</a>
This fresh wave of liquidity is expected to directly benefit companies like Baidu, which have significant exposure to sectors like AI, cloud computing, and autonomous driving that are heavily reliant on capital investment and government support. 
With banks now having more liquidity to lend, Baidu could see increased access to capital, facilitating the expansion of its AI capabilities, which remain a core pillar of the company's long-term growth strategy.
What Else: Beyond the immediate impact of the monetary easing, Baidu is also poised to benefit from the broader stimulus plans being discussed by Chinese authorities. Reports suggest that China may issue up to $284 billion in sovereign debt as part of a larger fiscal stimulus package. 
Such a package could bolster infrastructure spending, particularly in sectors like AI, autonomous driving, and smart cities, where Baidu has been heavily investing. As a leading player in AI, Baidu stands to gain from any policy measures aimed at boosting high-tech innovation and digital transformation in China.
Moreover, Baidu's strong position in China's digital economy has helped the stock rally in anticipation of stronger future earnings. The company's recent developments in AI—including its generative AI platform, Ernie Bot, which competes directly with OpenAI's ChatGPT—have placed Baidu at the cutting edge of global AI innovation. 
As China seeks to close the technological gap with the U.S. in this critical area, Baidu's leadership in AI could attract more government support and investor interest, making it a key beneficiary of the country's long-term tech ambitions.
Read Also: <a href="https://www.benzinga.com/general/biotech/24/09/41065699/sec-charges-cassava-sciences-over-manipulated-alzheimers-trial-data-company-and-former-execs-agre">SEC Charges Cassava Sciences Over Manipulated Alzheimer&#8217;s Trial Data, Company And Former Execs Agree To Pay Penalty</a>
Traders and investors can gain exposure to Baidu through KraneShares CSI China Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NASDAQ">KWEB</a>) and iShares China Large-Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NASDAQ">FXI</a>).
<h2 class="wp-block-heading">How To Buy BIDU Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Baidu&#8217;s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, BIDU has a 52-week high of $136.53 and a 52-week low of $79.68.

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