Shares of the Chinese technology giant Baidu (NASDAQ:BIDU) are down about 5% in the pre-market session as its AI (Artificial Intelligence)-chatbot failed to impress. The company launched the Ernie Bot via a recorded video, irking investors who expected a real-time demo.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Baidu didn’t delve into much detail about how it compares to OpenAI’s ChatGPT. However, its co-founder and CEO, Robin Li, admitted that Ernie isn’t “fully ready” to be compared to ChatGPT.
Earlier, a Wall Street Journal report highlighted that the Ernie Bot struggled to perform some basic functions as the company raced ahead for its planned launch. As Baidu’s chatbot launch upsets investors, it will raise concerns about Ernie’s capabilities to match ChatGPT.
The popularity of ChatGPT has led large tech enterprises to invest billions of dollars into launching their own AI-powered chatbots. Baidu joined the list of top technology companies like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), pouring money into tapping the growing potential of generative AI.
While BIDU’s ChatGPT answer fails to impress, let’s check what Street recommends for the company.
Is BIDU Stock Buy, Sell, or Hold?
With 11 Buy, one Hold, and one Sell recommendations, BIDU stock has a Strong Buy consensus rating on TipRanks. These analysts’ average price target of $179.31 implies an upside potential of 34.72%.
