Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

Baidu’s balance between cheap valuation and a marked deterioration in profitability is currently tilted toward caution. On valuation multiples, the company looks inexpensive on P/B and P/FCF, as well as on P/E, which is formally very low, but its zero/erratic dynamics reduce the usefulness of that signal. At the same time, P/S is above the industry median, suggesting that the market is not ready to fully reprice revenue in favor of shareholders. The debt burden is moderate: debt/equity is below the industry median, and the current ratio is above 2, which supports liquidity and reduces the risk of balance-sheet stress. However, the quick ratio is effectively zero, so the quality of short-term liquidity looks weaker than the current ratio suggests. The most notable problem is the decline in efficiency: ROE, ROA, ROI, and return on tangible equity are sharply below historical levels and industry benchmarks. Profit margin has also fallen, and operating margin has been zero in recent periods, indicating weak operating conversion of revenue into profit. Gross margin remains positive but is below prior levels, and gross profit and EBITDA do not show convincing improvement. Revenue and assets are generally holding steady, which points to the business maintaining its scale, but that is not enough to justify a strong re-rating. Net income remains positive, but net profit margin is very low, so earnings quality looks fragile. The company pays no dividends, so investors do not receive additional support through cash returns. Overall, the fundamentals justify a moderately lower valuation rather than the current operational outlook, because the cheap multiples already partially offset, but do not outweigh, the weak momentum in margins and returns on capital. For an investor, this is not a story of a strong re-rating, but of a cautious wait for stabilization in operating efficiency.

BAIDU-12.26

Baidu, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Слабый индекс, значительно вырос. Рынок на стороне быков.

Weak index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно упал. Рынок не поддерживает медведей.

Strong index, significantly down. The market does not support the bears.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Слабый индекс, незначительно упал

Baidu looks inexpensive on P/B and P/FCF, but weak profitability, declining margins, and zero dividend support limit the potential for revaluation.

For Immediate Release
Chicago, IL – September 28, 2026 – Today, Zacks Investment Ideas feature highlights Alibaba BABA, Baidu BIDU, Kingsoft Cloud KC, Tencent TCEHY, Hesai HSAI, Pony AI PONY and WeRide WRD.
Trump-Xi Meeting Puts These 5 Chinese AI Stocks in Focus
China’s artificial intelligence stocks are back in focus after President Trump hosted Chinese President Xi Jinping at the White House on Thursday, with AI emerging as one of the central topics of their meeting.
Along with trade, technology, and other geopolitical issues, Trump and Xi discussed artificial intelligence, with Xi calling for continued dialogue, cooperation, and maintaining human control over the technology.
The two countries also agreed to extend their existing trade truce by two months, although no major breakthrough on AI or technology restrictions was announced.
Meanwhile, private AI developer DeepSeek has helped demonstrate China's rapid progress in generative AI despite limits on access to advanced U.S. chips. Furthermore, many Chinese AI stocks trade at sizable valuation discounts to their U.S. counterparts, partly reflecting geopolitical and regulatory risks.
That said, here are five publicly traded Chinese AI companies worth watching as the country's AI buildout accelerates.
1. Alibaba – BABA
Alibaba arguably offers the broadest publicly traded exposure to China's AI infrastructure expansion through Alibaba Cloud, its Qwen models, and its growing portfolio of proprietary AI chips.
Alibaba recently raised roughly $10 billion, with 60% of the proceeds earmarked for global computing infrastructure and the remaining 40% targeting hyperscale AI data centers, storage, databases, and high-performance networking. The company also plans to expand Alibaba Cloud's operated global data-center capacity to more than 20 gigawatts by 2032.
AI Cloud and Compute Services revenue surged 45% year over year to more than $7 billion in Alibaba's latest quarter.
2. Baidu – BIDU
Baidu has rapidly shifted from its traditional search business to an AI-first strategy spanning cloud infrastructure, large language models (LLMs), and autonomous driving.
Most notably, Baidu's AI Cloud Infrastructure revenue jumped 50% YoY to $1.1 billion in Q2, while GPU Cloud revenue soared 283%, reflecting strong demand for computing capacity used in AI training and inference.
That makes Baidu one of the most direct large-cap Chinese plays on growing enterprise demand for AI computing.
3. Kingsoft Cloud – KC
Although much smaller than Alibaba and Baidu, Kingsoft Cloud provides perhaps the purest exposure to China's cloud infrastructure expansion among U.S.-listed Chinese stocks.
Kingsoft's AI cloud gross billings surged 82% YoY in Q2 and accounted for 56% of its public cloud revenue, driven by AI infrastructure services and Model-as-a-Service (MaaS) offerings.
For investors specifically tracking China's need for more computing capacity rather than consumer internet businesses, KC is an intriguing name to watch.
4. Tencent – TCEHY
Tencent is another Chinese technology giant investing aggressively across AI models, agents, and cloud infrastructure.
Tencent's Q2 capital expenditures soared 176% YoY to nearly $8 billion, as the company made substantial AI-related compute prepayments to support its Hy models, AI agents, and growing external cloud demand.
Tencent's massive gaming, social-media, and payments businesses make AI infrastructure a less concentrated part of the overall investment story than at Kingsoft Cloud, although its scale gives it significant resources to fund the buildout.
5. Hesai – HSAI
Hesai provides a different kind of infrastructure exposure through physical AI.
Rather than operating data centers, Hesai develops lidar, spatial-intelligence technology, and robotic actuation systems that allow autonomous vehicles and robots to perceive and interact with their surroundings.
Hesai now describes itself as a physical-AI infrastructure company spanning the full robotics chain of "see, understand and act," giving investors exposure to the expansion of autonomous mobility and embodied AI.
Honorable Mention: Pony AI & WeRide
Pony AI and WeRide are worth monitoring as more direct bets on autonomous driving and robotaxis rather than the underlying cloud buildout.
Pony AI's robotaxi revenue surged 691% year over year in Q2, while its fleet reached nearly 2,000 vehicles.
WeRide's Q2 revenue jumped 82%, while its global Level 4 autonomous fleet had expanded to approximately 3,400 vehicles by the end of July.
Both companies should be significant consumers of AI compute as autonomous-driving systems become increasingly sophisticated.
Bottom Line
The Trump-Xi meeting reinforced just how central artificial intelligence has become to the economic and technological relationship between the United States and China.
Among publicly traded Chinese companies, Alibaba and Baidu provide the broadest combination of AI models, cloud infrastructure, and computing capacity, while Kingsoft Cloud offers more concentrated cloud exposure.
Tencent brings tremendous financial scale, while Hesai, PonyAI, and WeRide extend the opportunity into physical AI, robotics, and autonomous transportation.
As China's AI ecosystem continues to expand despite constraints on access to some advanced U.S. technology, these stocks provide investors with several different ways to monitor the country's accelerating AI buildout.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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WeRide Inc. (WRD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Ideas feature highlights: Alibaba, Baidu, Kingsoft Cloud, Tencent, Hesai, Pony AI and WeRide

China’s artificial intelligence stocks are back in focus after President Trump hosted Chinese President Xi Jinping at the White House on Thursday, with AI emerging as one of the central topics of their meeting.
Along with trade, technology, and other geopolitical issues, Trump and Xi discussed artificial intelligence, with Xi calling for continued dialogue, cooperation, and maintaining human control over the technology.
The two countries also agreed to extend their existing trade truce by two months, although no major breakthrough on AI or technology restrictions was announced.
Still, the importance of technology was evident at the White House state dinner. Among those attending were Nvidia NVDA) CEO Jensen Huang, Advanced Micro Devices AMD) CEO Lisa Su, Tesla TSLA) and SpaceX SPCX) chief Elon Musk, and Apple (AAPL) executive chairman Tim Cook.
Meanwhile, private AI developer DeepSeek has helped demonstrate China's rapid progress in generative AI despite limits on access to advanced U.S. chips. Furthermore, many Chinese AI stocks trade at sizable valuation discounts to their U.S. counterparts, partly reflecting geopolitical and regulatory risks.
That said, here are five publicly traded Chinese AI companies worth watching as the country's AI buildout accelerates.
1. Alibaba – BABA
Alibaba BABA) arguably offers the broadest publicly traded exposure to China's AI infrastructure expansion through Alibaba Cloud, its Qwen models, and its growing portfolio of proprietary AI chips.
Alibaba recently raised roughly $10 billion, with 60% of the proceeds earmarked for global computing infrastructure and the remaining 40% targeting hyperscale AI data centers, storage, databases, and high-performance networking. The company also plans to expand Alibaba Cloud's operated global data-center capacity to more than 20 gigawatts by 2032.
AI Cloud and Compute Services revenue surged 45% year over year to more than $7 billion in Alibaba's latest quarter.
2. Baidu – BIDU
Baidu BIDU) has rapidly shifted from its traditional search business to an AI-first strategy spanning cloud infrastructure, large language models (LLMs), and autonomous driving.
Most notably, Baidu's AI Cloud Infrastructure revenue jumped 50% YoY to $1.1 billion in Q2, while GPU Cloud revenue soared 283%, reflecting strong demand for computing capacity used in AI training and inference.
That makes Baidu one of the most direct large-cap Chinese plays on growing enterprise demand for AI computing.
3. Kingsoft Cloud – KC
Although much smaller than Alibaba and Baidu, Kingsoft Cloud KC) provides perhaps the purest exposure to China's cloud infrastructure expansion among U.S.-listed Chinese stocks.
Kingsoft's AI cloud gross billings surged 82% YoY in Q2 and accounted for 56% of its public cloud revenue, driven by AI infrastructure services and Model-as-a-Service (MaaS) offerings.
For investors specifically tracking China's need for more computing capacity rather than consumer internet businesses, KC is an intriguing name to watch.
4. Tencent – TCEHY
Tencent TCEHY) is another Chinese technology giant investing aggressively across AI models, agents, and cloud infrastructure.
Tencent's Q2 capital expenditures soared 176% YoY to nearly $8 billion, as the company made substantial AI-related compute prepayments to support its Hy models, AI agents, and growing external cloud demand.
Tencent's massive gaming, social-media, and payments businesses make AI infrastructure a less concentrated part of the overall investment story than at Kingsoft Cloud, although its scale gives it significant resources to fund the buildout.
5. Hesai – HSAI
Hesai HSAI) provides a different kind of infrastructure exposure through physical AI.
Rather than operating data centers, Hesai develops lidar, spatial-intelligence technology, and robotic actuation systems that allow autonomous vehicles and robots to perceive and interact with their surroundings.
Hesai now describes itself as a physical-AI infrastructure company spanning the full robotics chain of "see, understand and act," giving investors exposure to the expansion of autonomous mobility and embodied AI.
Honorable Mention: Pony AI & WeRide
Pony AI PONY) and WeRide WRD) are worth monitoring as more direct bets on autonomous driving and robotaxis rather than the underlying cloud buildout.
Pony AI's robotaxi revenue surged 691% year over year in Q2, while its fleet reached nearly 2,000 vehicles.
WeRide's Q2 revenue jumped 82%, while its global Level 4 autonomous fleet had expanded to approximately 3,400 vehicles by the end of July.
Both companies should be significant consumers of AI compute as autonomous-driving systems become increasingly sophisticated.
Bottom Line
The Trump-Xi meeting reinforced just how central artificial intelligence has become to the economic and technological relationship between the United States and China.
Among publicly traded Chinese companies, Alibaba and Baidu provide the broadest combination of AI models, cloud infrastructure, and computing capacity, while Kingsoft Cloud offers more concentrated cloud exposure.
Tencent brings tremendous financial scale, while Hesai, PonyAI, and WeRide extend the opportunity into physical AI, robotics, and autonomous transportation.
As China's AI ecosystem continues to expand despite constraints on access to some advanced U.S. technology, these stocks provide investors with several different ways to monitor the country's accelerating AI buildout.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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This article originally published on Zacks Investment Research (zacks.com).

Trump-Xi Meeting Puts These 5 Chinese AI Stocks in Focus

For Immediate Release
Chicago, IL – September 23, 2026 – Zacks Equity Research shares Aurora Cannabis ACB as the Bull of the Day and Baidu BIDU as the Bear of the Day. In addition, Zacks Equity Research provides analysis on PepsiCo, Inc. PEP, The Coca-Cola Co. KO and Monster Beverage Corp. MNST.
Here is a synopsis of all five stocks:
After years of poor stock performance, inconsistent business momentum and an uncertain regulatory framework, cannabis stocks are finally beginning to show some signs of life.
The industry's fundamental backdrop is still far from perfect. But regulatory conditions are gradually improving, several operators are demonstrating better profitability, and investor interest is beginning to return after years of relentless selling.
One stock beginning to stand out is Aurora Cannabis.
Aurora has spent years restructuring its business after the excesses of the first cannabis boom, but the company today looks considerably different. Management has increasingly focused the business around higher-margin global medical cannabis, while exiting lower-return operations and expanding its presence across Europe.
More importantly for investors, analysts are beginning to recognize the improvement. Earnings estimates are moving sharply higher, ACB has climbed to a Zacks Rank #1 (Strong Buy), and the stock's technical picture is beginning to strengthen as well.
Cannabis Stocks Finally Have Some Catalysts
The regulatory backdrop remains one of the biggest potential catalysts for the cannabis industry.
Federal policy has moved toward less restrictive treatment of medical cannabis. Following an executive order in December 2025, the Justice Department issued a final order in April moving certain FDA-approved and state-licensed medical marijuana into Schedule III treatment. The broader regulatory picture remains unsettled, however, with legal challenges and administrative proceedings still ongoing.
The financial implications could be significant.
Section 280E of the tax code prevents businesses trafficking in Schedule I or Schedule II substances from deducting many normal operating expenses. Moving qualifying cannabis activity to Schedule III therefore has the potential to substantially lower effective tax burdens and improve cash flow for affected US cannabis operators.
Aurora itself has limited direct exposure to the US market, so investors shouldn't view 280E relief as a direct earnings catalyst for ACB. Instead, the regulatory shift matters primarily because it improves the broader environment for cannabis stocks and could ultimately accelerate momentum in an industry that has spent years operating under unusually restrictive conditions.
Aurora's company-specific opportunity is elsewhere: international medical cannabis.
The company has established significant positions across Canada, Germany, Poland, Australia and New Zealand and is concentrating capital on markets where medical cannabis economics are substantially more attractive than the highly competitive recreational market.
That focus is beginning to show through in the numbers.
Earnings Estimates Turn Higher for Aurora Cannabis
Aurora's most recent quarter was somewhat mixed on the surface, but there were several encouraging developments beneath the headline numbers.
Fiscal first quarter revenue declined year-over-year as Aurora continued winding down its consumer cannabis operations and dealt with lower reimbursement rates in Canadian medical cannabis. Internationally, however, the picture was considerably stronger.
International medical cannabis revenue increased 17% year over year, driven primarily by growing patient demand in Germany. Medical cannabis represented the vast majority of revenue in the quarter, illustrating just how dramatically the business has shifted toward its core medical franchise.
And Aurora continues to invest behind that opportunity.
The company's acquisition of Safari Flower Company added EU-GMP-certified production capacity, while Aurora is also expanding in the United Kingdom. Management recently reaffirmed expectations for sequential growth in both revenue and adjusted EBITDA during the fiscal second quarter, citing continued strength in Germany and Poland. Aurora also finished June with roughly C$149 million in cash and short-term investments and no debt.
Furthermore, markets trade on the direction of future earnings rather than past results, and this is where the Aurora story is becoming most interesting.
Earnings estimates have moved sharply higher in recent weeks. Most notably, next year estimates have flipped from a projected loss to a profit over the past 60 days.
That rapid improvement in analyst expectations is exactly what has pushed Aurora into a Zacks Rank #1 (Strong Buy).
The company has also now exceeded Zacks consensus EPS estimates in each of its last four quarters. Most recently, Aurora reported adjusted earnings of $0.04 per share versus expectations for a $0.13 loss, representing another substantial positive surprise.
There is another interesting validation of Aurora's assets as well.
Curaleaf Holdings recently launched an unsolicited takeover offer for the company. The proposal initially implied consideration of roughly $4 per Aurora share, consisting of cash and Curaleaf stock. Aurora's board has pushed back against the offer, but the bid nevertheless highlights the strategic value that a larger industry player sees in Aurora's international medical cannabis footprint.
ACB Shares Show Accelerating Momentum
The technical picture has also improved.
Aurora shares were hammered earlier this year, extending what has been a brutal multi-year period for long-term shareholders. But after falling toward the high-$2 range during the summer, the stock appears to have established a meaningful base.
Momentum has subsequently turned higher. Just this week, ACB shares have pushed to new multi-month highs and are approaching YTD highs.
Should Investors Buy Shares in ACB?
Aurora Cannabis remains a speculative stock in an industry with a long history of disappointing investors.
There are legitimate risks. The company's Canadian business remains under pressure, adjusted EBITDA declined sharply last quarter, the regulatory landscape remains complicated and the ongoing Curaleaf takeover battle adds another element of uncertainty.
But the setup is improving.
Aurora has shifted its focus toward higher-margin international medical cannabis markets, international revenue is growing at a double-digit pace, management expects sequential improvement in the current quarter and the balance sheet carries substantial cash with no debt. Most importantly from a Zacks perspective, analysts have begun raising their earnings expectations.
Meanwhile, the stock is beginning to confirm that improving outlook, with shares building momentum following a long period of weakness.
Cannabis stocks have generated plenty of false starts over the years. But with the industry backdrop improving and Aurora's earnings outlook turning higher at the same time its stock emerges from a long base, ACB may finally be offering investors a more compelling risk-reward setup.
Once one of China's most dominant technology companies, Baidu has struggled to find its footing in recent years.
The company remains a major player in search and is investing aggressively across artificial intelligence, cloud computing and autonomous driving. But those faster-growing businesses have yet to overcome weakness in Baidu's legacy operations, while earnings expectations continue to move sharply lower.
That combination has pushed BIDU to a Zacks Rank #5 (Strong Sell).
Baidu's Core Business Remains Under Pressure
Baidu's latest earnings results highlight the challenge.
Second-quarter revenue fell 4% year over year, while revenue from Baidu's General Business also declined 4%. Most concerning was online marketing, historically the company's core profit engine, where revenue dropped 19% year over year.
There are certainly bright spots though, as AI Cloud Infrastructure revenue increased 50% year over year, while GPU Cloud revenue surged 283%. Baidu is also continuing to expand its Apollo Go robotaxi operation internationally.
But for now, these businesses aren't growing quickly enough to offset deterioration elsewhere. Even Baidu's broader AI-powered business, while up 25% year over year, declined 8% sequentially during the second quarter.
BIDU Earnings Estimates Keep Falling
The most concerning signal for investors is the direction of earnings estimates.
The Zacks Consensus Estimate for current year earnings has fallen to $5.66 per share, down roughly 17% in the last 60 days. Next year estimates have also fallen more than 12% over that period.
Those downward revisions have earned Baidu a Zacks Rank #5 (Strong Sell).
Should Investors Avoid BIDU Stock?
Baidu still owns valuable assets, and its rapid growth in AI Cloud shows that the company is not standing still.
The problem is that investors aren't yet seeing that AI momentum translate into consistent company-wide growth.
Revenue is contracting, the traditional advertising business remains under significant pressure and analysts continue to cut earnings expectations. Meanwhile, BIDU shares have spent years struggling to establish a sustained uptrend.
Until the growing AI businesses begin to meaningfully offset weakness in Baidu's legacy operations and earnings estimates stabilize, investors may want to look elsewhere for technology exposure.
Additional content:
Can Zero Sugar Drinks Fuel PepsiCo's Next Growth Phase?
PepsiCo, Inc. is strengthening its beverage portfolio by focusing on non-sugar offerings as consumer preferences evolve. The performance of the non-sugar portion of its beverage business, along with functional hydration and energy, remains encouraging. These initiatives are part of PepsiCo's broader portfolio transformation strategy aimed at catering to changing food and beverage habits while creating new growth opportunities.
The company is increasingly relying on its zero-sugar beverage portfolio to support growth as consumers become more health-conscious and reduce their intake of added sugar. Brands such as Pepsi Zero Sugar, Diet Pepsi and other low- and no-sugar offerings allow the company to address changing preferences while maintaining the appeal of its established beverage franchises.
Zero-sugar beverages can contribute to PepsiCo's growth by catering to consumers who enjoy the taste of traditional soft drinks but prefer lower-sugar options. The company can further drive demand through product innovation, refreshed packaging and targeted marketing initiatives that enhance awareness and consumer engagement. In addition, PepsiCo's extensive distribution network spanning convenience stores, supermarkets, restaurants and other retail channels provides broad availability for its zero-sugar offerings, helping it reach a wider consumer base.
PepsiCo can further benefit from premiumization and price-pack architecture. Offering zero-sugar beverages in different package sizes and formats can help the company address varied consumption occasions while supporting revenue and margin growth. Innovation around flavors and functional attributes could also broaden the category beyond traditional colas.
Overall, PepsiCo's expanding zero-sugar portfolio represents an important growth lever. Combined with stronger brand execution, innovation, pricing discipline and distribution capabilities, these offerings could help the company capture evolving beverage demand and support more sustainable growth.
PEP's Peers: How are They Doing?
The Coca-Cola Co. maintains a diversified global non-alcoholic beverage portfolio spanning carbonated soft drinks, hydration, energy, juices, dairy, coffee, tea and functional beverages. KO's growth strategy focuses on leveraging strong brands, premiumization, zero-sugar innovation and expansion in high-growth beverage categories. Coca-Cola is also emphasizing product innovation, portfolio expansion and deeper consumer engagement to strengthen brand relevance and support sustainable growth.
Monster Beverage Corp. continues to benefit from the expanding global energy drinks market, supported by steady demand across convenience stores and other major retail channels. MNST is strengthening its portfolio through new flavors and health-oriented offerings while focusing on supply-chain optimization and strategic pricing. Continued category expansion and product innovation are helping Monster Beverage broaden its consumer reach and reinforce its position in the energy drinks market.
PEP's Price Performance, Valuation and Estimates
Shares of PepsiCo have lost 12.3% in the past six months against the industry's growth of 10.8%.
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 14.60X compared with the industry's average of 19X.
The Zacks Consensus Estimate for PEP's 2026 and 2027 earnings per share (EPS) implies a year-over-year rise of 5.3% and 4.9%, respectively. The estimates for 2026 have been stable but 2027 estimates have moved south in the past 30 days.
PepsiCo stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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Aurora Cannabis and Baidu have been highlighted as Zacks Bull and Bear of the Day

Uber Technologies UBER moved a step closer to acquiring Delivery Hero when the latter’s board recommended that shareholders accept its offer. The board recently issued a statement terming Uber’s offer "fair and adequate." The acceptance period for the takeover offer ends on Nov. 5, 2026.
Under the takeover offer, Uber will pay €41.50 per Delivery Hero share, valuing the latter at approximately $14.8 billion, or $13.7 billion after adjusting for the former's existing stake. Before the offer, Uber owned about 24.77% of Delivery Hero's voting shares and had an additional 11.74% economic exposure through equity derivatives. Prosus has agreed to tender its roughly 17% stake, raising Uber's total economic interest to about 53%. The takeover would significantly increase the number of markets where Uber can offer both mobility and delivery services from 34 to 58.
Uber expects the acquisition to strengthen the global technology platform by combining it with Delivery Hero's established local brands, merchant network and delivery capabilities. The combined business is anticipated to enhance consumer choice, improve the Uber One membership proposition and provide merchants with greater demand through Uber's large user base, supported by advertising, promotional and commerce tools. AUber is denser network is also expected to increase order volumes, improve courier utilization and create additional earning opportunities for delivery partners and drivers.
With Uber’s impending acquisition of Delivery Hero taking a major step toward completion, the question is whether it is worth buying UBER stock at current prices. Let us dig deeper to find out.
Further Factors Working in Favor of UBER
AV Ambitions Gain Pace: Uber is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. To this end, it has recently inked many deals. Earlier this month, Uber and British AI company Wayve have launched supervised autonomous rides in London, making such trips available in the United Kingdom for the first time. Londoners requesting UberX, Uber Electric or Uber Comfort may now be matched with a Wayve vehicle at no additional cost, with fares displayed upfront in the Uber app.
In June, Uber, in collaboration with WeRide WRD, a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid. The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office, pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
Last month, Uber announced that another Chinese company, Baidu BIDU, has made its fully autonomous Apollo Go vehicles are available to riders through the former’s platform in Dubai, with New Horizon Luxury Transport operating the fleet. The rollout strengthens Uber’s position in the autonomous-vehicle market and represents an important step in the global expansion of driverless transportation.
Dubai is the first launch location under the companies’ multi-year strategic partnership, which aims to deploy thousands of Apollo Go vehicles of Baidu across Uber’s worldwide network. Uber emphasized that safety remains a central priority. Baidu’s Apollo Go vehicles, like all autonomous vehicles operating through Uber’s network, must comply with its safety guidelines before entering service.
Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.
Gross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.
In the second quarter of 2026, gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup.
Segment-wise, Mobility bookings rose 22% year over year on a reported basis and 20% on a constant currency basis to $28.98 billion, supported by continued demand for rides across Uber’s global platform. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico.
Delivery gross bookings increased 26% year over year on a reported basis and 25% on a constant currency basis to $27.46 billion, while Freight bookings increased 25% year over year on a reported basis as well as on a constant currency basis to $1.57 billion. Growth across all three offerings demonstrated the breadth of the company’s platform during the quarter.
For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is roughly in line with the Zacks Consensus Estimate of $59.2 billion.
Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.
Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%.
Uber Technologies Price and EPS Surprise
Growth Opportunity for UBER Is Real, but so Are the Risks
Agreed that Uber is benefiting from its AV-related ambitions and gross booking strength. The acquisition of Delivery Hero, if it materializes, would lead to significant expansion for Uber. However, investors should remember that it is facing some headwinds that cannot be ignored.
UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.7 billion at the end of the second quarter of 2026, which translates into a long-term debt-to-capitalization of 27.9%. This is reasonable but above the Zacks Internet-Services industry’s 11.8%. UBER’s times interest earned ratio at the June quarter-end was 15.5, which is much lower than its industry, indicating a high risk of default.
Shares of Uber have declined in single digits (% wise) so far this year, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.
YTD Price Comparison
Image Source: Zacks Investment Research
What Do Estimates Suggest for Uber?
The Zacks Consensus Estimate for 2026 earnings implies a year-over-year decline of approximately 35%, while 11% growth is indicated in terms of revenues. However, the earnings estimate revision trend is impressive. Earnings per share estimate projections for the current and next quarter, and full-year 2026 and 2027 have improved over the past 60 days.
Image Source: Zacks Investment Research
How to Play UBER Stock Currently?
While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the long-term outlook for the ride-hailing giant remains far from discouraging.
The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $154.74 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.
Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is UBER Stock a Buy as It Closes in on Delivery Hero Buyout?

Key Points
As AI continues to proliferate, data centers are getting larger to achieve greater efficiency.
Some of them are becoming so big, in fact, that they are their own digital, physical, and logistical ecosystem.
Even without knowing precisely what a hyperscale data center is, knowing who offers cloud-based access to them -- and what their platforms are capable of -- puts things in their proper perspective.
Hyperscalers. It's a term we've all heard tossed around quite a bit lately -- and maybe even used ourselves -- perhaps without even knowing exactly what it means.
If that's you, I've got good news for you. That is, there's no hard-and-fast textbook definition of the word. There is an unofficial understanding of what it means, though.
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To fully appreciate what a hyperscaler is, however, you should also know which companies are the biggest names in the hyperscaling business. If you are interested in investing in hyperscalers, keep the information below in mind as you research your options.
Hyperscalers are data centers on steroids
Getting straight to the point, hyperscalers are just organizations that own and operate massive data centers.
There's no specific threshold for computing capacity, power consumption, or the number of processing chips that qualifies a data center as hyperscale. Both Cisco Systems and IBM agree that a true hyperscale facility is at least 10,000 square feet and houses a minimum of 5,000 servers (although most are far greater in scale and scope). And, each of these servers can accommodate anywhere from one to several dozen actual computing processors.
As for power, at the lower end of the scale, a smaller hyperscale data center may only need a few megawatts of electricity, although many require in the ballpark of 100 megawatts. A handful of the largest hyperscale facilities can draw several hundred megawatts of electricity, enough to power a few hundred thousand homes.
Most of the data centers that have been recently constructed or are currently being planned are, of course, artificial intelligence data centers, built using higher-performance technology that can handle significantly more digital data than the previous generation of data centers. As of its latest count, Data Center Map say there are over 12,000 data centers peppered all across the planet, with nearly 4,800 of those located in the United States alone.
Not all of those are hyperscale data centers or, for that matter, artificial intelligence data centers. Numbers from Synergy Research Group indicate that only about 1,360 data centers were up and running as of the end of 2025 and would qualify as hyperscale facilities. Although Synergy's data didn't say as much, I think it's reasonably safe to presume the majority of these hyperscale data centers are at least AI-capable, handling anywhere from a few petabytes to a few hundred petabytes of digital data every day.
For reference, a petabyte is 1 million gigabytes.
The usual hyperscale suspects
As I noted, knowing the companies that are leading the hyperscaler race may be even more helpful than understanding what a hyperscale facility technically is.
To this end, none of the big names in the business is particularly surprising. Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google are the industry's three biggest players, collectively controlling 63% of the public cloud market. That just means they offer remote, cloud-based access to their data center infrastructure to companies that don't want to (or can't) build their own. And again, much of this cloud computing infrastructure -- and certainly most of the more recently constructed facilities -- is hyperscaled infrastructure capable of artificial intelligence work.
It's not just Amazon, Microsoft, or Google, though. Meta Platforms (NASDAQ: META) and Oracle (NYSE: ORCL) are in the mix as well. While they may own fewer total hyperscale data centers, the ones they operate are, on average, similar in size to those managed by the big three names in the business. In fact, Meta's $50 billion, 10-million-square-foot "Hyperion" facility, currently under construction in Louisiana, will be one of the world's largest artificial intelligence data centers once it's completed.
Apple (NASDAQ: AAPL) is another hyperscaler name. Although it has fewer total AI data centers, just because it doesn't run a public cloud computing business, the few facilities it owns for its own internal use are massive.
Don't forget to look overseas as well. Like Apple and Oracle, China's technology powerhouses Alibaba (NYSE: BABA) and Baidu (NASDAQ: BIDU) don't have many high-performance data centers. Several of the ones they do have, however, are enormously capable simply because they're enormous. For instance, an AI data center being built by China Telecom in southern China will employ 10,000 "Zhenwu" processing chips designed and made by Alibaba for the express purpose of doing artificial intelligence work. This facility will most definitely qualify as a hyperscale data center.
That being said, I still contend that Amazon, Alphabet's Google, and Microsoft will remain the leading names in the artificial intelligence data center market, with Google eventually eclipsing Amazon's leading market share due to the strong performance of its proprietary Tensor Processing Units, or TPUs.
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What Are Hyperscalers? The 3 Cloud Giants Powering AI's Next Decade

(RTTNews) - Uber Technologies, Inc. (UBER), the ride hailing application, Thursday announced that it has launched Chinese AI company, Baidu, Inc.'s (BIDU), fully driverless Apollo Go vehicles on its ride hailing platform in Dubai with New Horizon Luxury Transport serving as the fleet operator.
Apollo Go's sixth-generation RT6 is a purpose-built, fully electric robotaxi designed for fully driverless operations and at initial launch, the fully autonomous service will be available in select locations in Umm Suqeim and Jumeirah, with plans to expand the operating territory in the future, Uber said in a statement.
Riders in Dubai can now request an UberX or Uber Comfort matched with a fully driverless Apollo Go vehicle. To increase the chances of being matched with a robotaxi, customers can also select the autonomous option directly on the Uber app.
The Apollo Go vehicle can accommodate up to three passengers, with each robotaxi equipped with more than 30 sensors for comprehensive perception of its surroundings and real-time onboard data processing.
On Wednesday, Uber shares closed at $78.04, up 4.53% on the New York Stock Exchange and BIDU shares closed at $92.87, up 2.20% on the Nasdaq.

Uber Debuts Baidu's Driverless Apollo Go Vehicles In Dubai

(RTTNews) - Uber Technologies Inc. (UBER), a ride-hailing and mobility company, on Thursday announced that Baidu Inc.'s (BIDU, 9888.HK) fully driverless Apollo Go vehicles are now available to riders on the Uber platform in Dubai.
The launch is part of a multi-year strategic partnership to scale thousands of Apollo Go vehicles across Uber's global network.
The service uses Apollo Go's sixth-generation RT6, a fully electric robotaxi designed for fully driverless operations and equipped with more than 30 sensors.
The service is initially available in select areas of Umm Suqeim and Jumeirah, with plans to expand the operating territory.
The company said that riders requesting UberX or Uber Comfort may be matched with an Apollo Go vehicle, while a dedicated "Autonomous" option is also available in the Uber app.
The company said the launch marks the first market where Uber's multi-partner autonomous vehicle network has been deployed.
Uber closed trading 4.53% higher at $78.04 on the New York Stock Exchange. In the overnight, the stock further traded 0.35% higher at $78.31.

Uber Launches Baidu's Fully Driverless Apollo Go Robotaxis In Dubai

Western Digital Corporation’s WDC shares slid 7.4% on the tech stocks having a rough session.
Shares of Baidu, Inc. BIDU plunged 12.7% after reporting second-quarter 2026 adjusted earnings of $1.06 per share, widely missing the Zacks Consensus Estimate of $1.51.
ExxonMobil Holdings Corporation’s XOM shares rose 2.5% on energy emerging as one of the biggest winning sectors in the session.
Shares of Amer Sports, Inc. AS gained 3.2% after reporting second-quarter fiscal 2026 adjusted earnings of 22 cents per share, beating the Zacks Consensus Estimate of 11 cents.
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Company News for Aug 19, 2026

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Baidu (BIDU) Q2 2026 Earnings Call Transcript

Key Points
Baidu's quarterly results were disappointing to investors.
The company has been investing heavily in AI, but its results continue to lag.
Shares of Baidu (NASDAQ: BIDU) fell sharply on Tuesday, falling as much as 11.6%. As of 11:32 a.m. ET, the stock was still down 11.4%.
The catalyst that sent the Chinese tech giant lower was news that its heavy investment in artificial intelligence (AI) isn't paying off quickly enough for Wall Street.
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Heavy investment, little return
Baidu reported its second-quarter results, and to say investors were disappointed might be putting it mildly. Revenue of RMB 31.3 billion (roughly $4.62 billion) fell 4% year over year, with declines across the major operating units. Revenue from its general business declined 3% to $3.71 billion, while revenue from iQIYI -- its majority-owned streaming service -- slipped 5% to $927 million.
If the top-line results were disappointing, the bottom line was doubly so. Diluted earnings per American Depository Share (ADS) of RMB 5.74 (about $0.85) plunged 72%.
For context, analysts' consensus estimates called for revenue of RMB 31.95 billion and earnings per ADS of RMB 9.84, so Baidu missed expectations by a country mile.
Perhaps most concerning was that the company's legacy ad business continued to struggle, as online marketing revenue fell 19% year over year.
There were some green shoots, as Baidu's AI-powered core business grew 25% year over year, driven higher by its AI cloud, which jumped 50%. AI applications edged 3% higher, while its AI-based marketing services were flat.
Baidu continues to invest heavily in its AI-powered future, with capital expenditures (capex) of RMB 11.4 billion (about $1.68 billion), triple the RMB 3,800 it spent in the prior-year quarter. It's clear investors had hoped that spending of that magnitude would yield more impressive results.
At 71 times trailing-12-month earnings, Baidu is selling for a premium. However, at just 13 times forward earnings, it represents a high-risk, high-reward proposition. Let the buyer beware.
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Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
P/E	—	0.00	0.00	0.00	—	0.00	17.73
Price/Sales	2.32	2.09	2.15	1.59	—	1.59	0.99
P/B	1.16	—	0.82	—	0.59	0.59	1.47
P/FCF	24.53	—	0.00	—	0.00	0.00	10.25

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
ROE	—	—	—	—	—	0.59	13.26
ROA	—	0.00	—	—	—	0.00	5.10
ROI	—	0.00	—	—	—	0.00	7.48
Net Worth	43.18	39.36	40.75	—	—	38.39	0.65
Quick Ratio	—	0.00	—	—	—	0.00	0.92
Current Ratio	—	2.33	—	—	—	2.33	1.15

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
Net Profit Margin	—	—	—	—	—	1.26	9.98
Operating Margin	—	0.00	—	—	—	0.00	14.37
Gross Margin	—	40.92	—	—	—	40.92	55.30
Return on tangible equity	—	0.00	—	—	—	0.00	26.67

Baidu, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	May 26	Jun 26	Jul 26	Sep 26	Oct 26	TTM	Median
EPS	—	—	—	—	—	2.48	0.33
EPS Forecast	—	—	—	—	—	1.95	0.27
Revenue	—	4.62B	—	—	—	4.62B	83.00M
Gross Profit	—	1.80B	—	—	—	1.80B	—
EBITDA	—	446.00M	—	—	—	446.00M	—