Baidu, Inc. (NASDAQ:BIDU) is one of the Top 15 Chinese Companies on US Exchanges. On January 20, WSJ reported that Baidu, Inc.’s AI assistant has surpassed 200 million monthly active users. Amid the growing AI competition among Chinese tech giants, Baidu’s flagship AI model Ernie Assistant is integrated into the company’s leading search engine app and on personal computers. Baidu's AI Models Continues to Expand With Ernie Assistant Surpassing 200 million Monthly Active Users Gil C / Shutterstock.com Er ...

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **China Internet** industry, focusing on the promotional campaigns by major internet companies during the **2026 Chinese New Year (CNY)** holidays, which occur from **February 15-23, 2026** [1][1]. Core Companies and Their Campaigns Tencent - Tencent announced a **Rmb1 billion** cash red-envelope campaign on **January 25, 2026**, to promote the adoption of its **Yuanbao** app, allowing users to win up to **Rmb10,000** by trying new AI features [2][2]. - The campaign is expected to enhance user engagement and drive traffic to its AI products [1][1]. Baidu - Baidu launched a **Rmb500 million** red-envelope campaign on the same day, integrating its **Ernie Assistant** into the promotional activities [3][3]. - The campaign includes various interactive activities within the Baidu app, encouraging user participation and reward claiming [3][3]. Bytedance - Bytedance's **Volcengine** was announced as the exclusive AI cloud partner for the **2026 CNY Gala**, utilizing its technology for program production and online interactions [4][4]. - The **Doubao** smart assistant will feature interactive elements during the event [4][4]. Alibaba - Alibaba has not yet detailed its CNY promotional campaign but is expected to promote its **Qwen** app, which was the exclusive title sponsor for Bilibili's **2026 New Year's Eve Gala** [6][6]. - Qwen is integrated into Alibaba's ecosystem and is anticipated to play a significant role in upcoming promotions [6][6]. User Metrics and Market Position - **Doubao** leads the market with **227 million** monthly active users (MAUs) as of December 2025, followed by **DeepSeek** (136 million), **Yuanbao** (41 million), **Qwen** (26 million), and **Wenxin** (5 million) [7][7]. - Year-over-year growth rates show Doubao at **+201%**, Yuanbao at **+47%**, and Qwen at **+1,830%** [7][7]. - Daily active users (DAUs) for Doubao reached **70 million**, with significant engagement metrics across the platforms [7][7]. Investment Insights - The report suggests a preference order for AI plays: **Tencent > Alibaba > Baidu**, based on recent share price performance [1][1]. - The competitive landscape among AI chatbots is expected to intensify as companies vie for user traffic and future monetization opportunities [1][1]. Risks and Challenges - Key risks for Alibaba include execution failures in its retail strategy, investment spending pressures, and potential regulatory challenges [15][17]. - For Baidu, risks include slower recovery in its search business, competition in advertising, and economic slowdowns affecting ad budgets [22][22]. - Tencent faces risks from revenue slowdowns in core gaming and advertising sectors, as well as regulatory changes [24][24]. Valuation Insights - Target prices are set at **HK$195.0** for Alibaba H-shares and **US$186** for Baidu shares, based on various financial metrics and market comparisons [14][16][18][19][23]. - Tencent's target price is set at **HK$783**, reflecting a sum-of-the-parts valuation approach [23][23]. This summary encapsulates the key points from the conference call, highlighting the competitive dynamics, promotional strategies, user engagement metrics, and associated risks within the China Internet industry.

Group 1 - The company has integrated its artificial intelligence-powered Ernie Assistant into its flagship Baidu search-engine app and on personal computers [1]