We believe Baidu could see a short-term bounce in its share price if its Q1 2024 report beats expectations. The company has consistently been at the forefront of China's AI development, but political risks are weighing on the share price. This week's stock sentiment will be driven by Amazon and Apple, which report their interim results on Tuesday 30 April and Thursday 2 May respectively.

When we last spotlighted Baidu Inc. in November 2023, we focused on the potential for a short-term bounce in the share price following Q3 2023 earnings, which were due a few days after our commentary. Baidu shares have fallen back and are now trading around USD 100 per share. The situation today is the same as it was in November, with the Q1 2024 report due on 16 May. In the Q4'23 report, Baidu highlighted Samsung and Honor smartphones with integrated Baidu AI chat capabilities. It also unveiled a series of AI toolkits - AgentBuilder, AppBuilder and ModelBuilder - aimed at driving AI innovation.
 
US equities rose sharply on Friday 19th April after PCE inflation data came in in line with expectations. Earnings reports from some of the Magnificent Seven, such as Microsoft and Alphabet, also boosted the S&P500 index by 1.0% on Friday and 2.7% for the week 22-26 April. Reports from Amazon on Tuesday 30th April and Apple on Thursday 2nd May are likely to have a major impact on the direction of equity indices this week.
 
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About Vontobel:

As a globally operating financial expert with Swiss roots, Vontobel specializes in wealth management, active asset management and investment solutions. Digital Investing bundles different investment solutions for private investors either directly or via ecosystems. Read more

About Carlsquare

Carlsquare is a global research firm and financial advisor, focusing on M&A, Equity
Research and Growth Equity. Carlsquare has 150 employees with deep sector knowledge in all 11
GICS sectors. The senior equity research team has extensive experience about the stock
environment and several business sectors. The team produces company research reports,
independent valuations and trading notes. The group have offices in Canada, Denmark, France, Germany, Poland, Sweden, United Kingdom and United States. Read more

Contact
MARKUS AUGUSTSSON
Head of Equity Research
markus.augustsson@carlsquare.com
+46 (0)76 235 03 20

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Carlsquare/Vontobel weekly trading note: Amazon and Apple in focus this week

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