Shares on Hong Kong-listed Baidu, Inc. (HK:9888) gained momentum today after reports indicated that the company’s Apollo Go robotaxi trials are set to start soon in Hong Kong. The company already operates these services in over 10 cities in Mainland China. Investors responded positively to the market reports, with Baidu shares rising over 4% at the time of writing. However, the stock has dropped nearly 30% year-to-date.
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Baidu is a Chinese technology company, focusing on AI and internet-related services. Apollo Go is the company’s autonomous ride-hailing service, designed to offer driverless transportation using its self-driving technology.
Baidu’s Robotaxi to Hit Hong Kong Roads Soon
According to Hong Kong media company TVB, Apollo Go aims to launch trial operations starting with the first phase of testing at the airport, which could begin by the end of this year. Meanwhile, the testing will take place during off-peak hours with a highly experienced driver as a backup.
The report further stated last month Baidu applied for a trial self-driving test license and an autonomous vehicle certificate, which is currently awaiting approval. For the approval, the Transport Department will rigorously oversee and ensure the safe and orderly testing of autonomous vehicles in Hong Kong.
Baidu’s Q3 Results Reflect AI Growth
Earlier this week, Baidu released its Q3 results, which reflected continued weakness in its online marketing business, offsetting the growth in its AI Cloud business. Overall, the company’s revenues declined by 3% year-over-year to ¥33.56 billion in Q3.
Additionally, the company revealed the expansion of its Apollo Go driverless taxis in multiple cities across China in its Q3 results. It now covers over 70% of total rides in the country. In Q3, Apollo Go completed 988,000 rides, marking a 20% year-over-year increase.
As of October 28, 2024, Apollo Go has provided over 8 million cumulative rides to the public.
Is Baidu Stock a Good Buy?
According to TipRanks’ rating consensus, 9888 stock has received a Moderate Buy rating, backed by four Buy and three Hold recommendations. The Baidu share price forecast is HK$107.19, which implies an upside of 38% on the current trading level.
