Quick Win By The Algorithm: BAIDU Reaches New 52-Week High

Quick Win By The Algorithm

On October 13th, 2017, I Know First issued a bullish 3 day forecast for Baidu, Inc. (NASDAQ: BIDU). The forecast showed a signal of 11.03 and a predictability of 0.14. In accordance with the forecast, BIDU’s stock returned 5.20% over this period, solidifying another quick win by the I Know First algorithm.

Baidu, Inc. provides Internet search services in China and internationally. It operates through three segments: Search Services, Transaction Services, and IQiyi. It’s Chinese language search platform, Baidu.com,  enables users to find relevant information online.  There is also the transaction platform which includes Nuomi.com.  Nuomi.com connects online and offline services provided by third-parties. The company also provides transaction services, such as Baidu Nuomi, Baidu Deliveries, Baidu Mobile Game, Baidu Wallet, and Baidu Maps.  The final segment is iQiyi, an online video platform.  It has a content library that includes licensed movies, television series, cartoons, shows, and other programs.  Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People’s Republic of China.

iQiyi to IPO

Baidu Inc.’s stock jumped nicely, even reaching a new 52-week high, due to an announcement that the search giant had picked three investment banks to help its online video platform, iQiyi, go public in the U.S.  This “Chinese Netflix” division of Baidu Inc. is seeking a valuation in the $8-$10 billion dollar range.  The initial public offering (IPO) is expected to be worth around $1 billion.  Baidu Inc. will continue to have a controlling stake.  Bank of America, Credit Suisse, and Goldman Sachs will manage the deal.  It is expected to take place in the first half of 2018.

This announcement should help Baidu’s stock increase in value.  Companies usually let part of their business go public if they believe the market is currently undervaluing it.

Current I Know First subscribers received this bullish BIDU forecast on October 13th, 2017

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.