📉 Top mover alert: Baidu sinks 6% on results
➡️ Baidu shares listed in Hong Kong are trading down 6% to HKD 81.30, and is currently ranking as one of the top 3 index laggards on the Hang Seng Index. Consequently, Macquarie's Baidu put warrant 📌 Baidu MB ePW250402 (LCGW) (https://warrants.com.sg/tools/livematrix/LCGW) has risen 16.3% to SGD 0.100 while call warrant 📌 Baidu MB eCW250204 (ULNW) (https://warrants.com.sg/tools/livematrix/ULNW) has fallen 32.1% to SGD 0.019.
➡️ The warrants moved between 2.5 times to 5 times more than the underlying shares due to their different gearing levels. Investors keen to use warrants to gain geared exposure to Baidu shares without leaving the SGX may view our earlier 'Buy on the Bid' post for more information.
➡️ Baidu's second quarter revenues of 33.93 billion yuan is 0.4% lower from the same period a year before, and below Bloomberg's estimates of 34.11 billion yuan.
➡️ The underperformance shines a spotlight on the challenge of translating Baidu’s lead in generative AI into significant revenue. Baidu’s “Ernie” large language model has increasingly contributed additional sales through ad and cloud services, though it’s embroiled in an AI price war against the likes of Alibaba and Tencent. (Bloomberg)
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The official account of Macquarie Warrants Singapore
Macquarie Warrants Singapore is an issuer and market-maker in Macquarie warrants listed on the SGX.
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