Forbes·2025-07-17 09:00Group 1: Core Insights - Baidu's stock surged nearly 9% following a collaboration with Uber to introduce autonomous vehicles on Uber's platform outside of China and the U.S. [2] - The partnership marks a significant step in Baidu's efforts to internationalize its autonomous driving initiatives, with initial launches expected in Asia and the Middle East by the end of 2025 [3] - Baidu's Apollo Go division reported over 1.4 million rides in Q1 2025, a 75% increase year-over-year, and operates over 1,000 fully driverless vehicles across 15 cities [4] Group 2: Market Potential - Uber's human-driven rides generated a $375 billion annual revenue pool, indicating a substantial opportunity for the autonomous sector, which could potentially double the existing ride-hailing market to a $750 billion opportunity [4] - The demand for autonomous ride-hailing is expected to increase as users experience the benefits, with Robotaxis like Waymo showing higher customer retention and fewer accidents [4] Group 3: Challenges and Valuation - Baidu's stock has faced challenges due to a slower-than-expected post-Covid economic recovery in China, leading to reduced advertising revenue in its core search business [5] - The emergence of generative AI has created uncertainty for traditional search models, with competition from other Chinese tech giants like Alibaba and Tencent [5] - Baidu is currently valued at around $90 per share, trading at approximately 10x projected 2025 earnings, significantly lower than its nearly 40x multiple during the pandemic, with nearly $22 billion in net cash [6]