Should Baidu’s (BIDU) European AV Partnership With Lyft Shape Investor Views on International Expansion?

• On August 4, 2025, Baidu, Inc. and Lyft, Inc. announced a strategic partnership to deploy Baidu's Apollo Go autonomous vehicles across key European markets, starting with Germany and the UK in 2026, pending regulatory approval, and scaling to thousands of vehicles in the following years.
• This collaboration marks Baidu’s first major autonomous vehicle initiative in Europe, leveraging Lyft’s platform and existing FREENOW network to accelerate regional rollout and regulatory acceptance.
• We'll explore how Baidu's European AV partnership with Lyft could reshape its international expansion focus and future growth narrative.

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Baidu Investment Narrative Recap

To be a Baidu shareholder, you need to believe that the company’s global technology ambitions, especially in AI and autonomous vehicles, can drive long-term earnings despite near-term pressures on its core online marketing and revenue growth. The recent Baidu-Lyft partnership speeds up international AV expansion, providing a potential catalyst for sentiment and future growth, but the biggest risk remains revenue declines in Baidu’s main business, this announcement hasn’t yet addressed those underlying headwinds in a material way.

Among recent company announcements, Baidu’s July 2025 alliance with Uber is particularly relevant. That deal further expands Apollo Go’s reach across Asia and the Middle East, underscoring Baidu’s commitment to scaling its AV business beyond China, a key catalyst if global AV adoption boosts revenue enough to offset declines elsewhere.

On the other hand, investors should not ignore the potential challenges if regulatory or market barriers in Europe delay profitability in this new segment, especially as...

Read the full narrative on Baidu (it's free!)

Baidu's narrative projects CN¥151.6 billion in revenue and CN¥23.1 billion in earnings by 2028. This requires 4.2% yearly revenue growth and a CN¥2.3 billion decrease in earnings from CN¥25.4 billion today.

Uncover how Baidu's forecasts yield a $100.03 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members peg Baidu’s fair value per share between CN¥71 and CN¥160, with 18 unique analyses. With Baidu’s core revenues pressured, this wide range reflects sharply different views on the impact of new ventures and long-term profit prospects.

Explore 18 other fair value estimates on Baidu - why the stock might be worth as much as 78% more than the current price!

Build Your Own Baidu Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Baidu research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Baidu research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baidu's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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