Is Apollo Go's Global Push a Sign of More Upside for Baidu Stock?

Baidu's BIDU strategic push to expand Apollo Go internationally represents a pivotal moment in the autonomous ride-hailing industry. Rather than treating Robotaxi as a domestic showcase, the company is positioning Apollo Go as a global mobility platform, leveraging its decade-long technical edge and one of the industry’s largest fully driverless fleets. The strategy centres on aligning with established local operators and securing regulatory clarity in markets where commercial adoption could scale quickly.

The international expansion has been gaining significant momentum. In Switzerland, Apollo Go launched services with PostBus, while in Abu Dhabi, it has secured complete driverless commercial permits. In Hong Kong, open-road testing zones have expanded across Kowloon and Kwun Tong. By November 2025, cumulative public rides surpassed 17 million and the service’s footprint reached 22 cities. Weekly fully driverless rides exceeded 250,000 in October and Apollo Go fleets have logged 240 million autonomous kilometres with 140 million fully driverless, while maintaining a strong safety record.

The operational scale is translating into early economic signals. Several cities are already profitable on a unit basis, with more expected in 2026 as utilisation improves and asset-light partnerships gain traction. However, the financial impact remains gradual. The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $4.62 billion, indicating a 1.09% year-over-year decline, showing Apollo Go has not yet offset broader pressures. Even so, its global rollout strengthens the longer-term setup. If profitability broadens in 2026, Apollo Go’s expansion could emerge as a more tangible driver of upside for Baidu.

Competition Heats Up in Global Autonomous Mobility

Competition in autonomous mobility is intensifying, as Tesla TSLA and Alphabet GOOGL scale their platforms in ways that increasingly overlap with Baidu’s ambitions. Tesla is advancing Full Self Driving through continuous software upgrades, while Alphabet is expanding Waymo’s robotaxi network in major U.S. cities. Both Tesla and Alphabet are pushing toward broader commercial deployment, creating pressure for Baidu as Apollo Go moves into global markets. Tesla’s vehicle-integrated autonomy and Alphabet’s purpose-built robotaxi model contrast with Baidu’s mass-market approach, highlighting how Baidu must differentiate on operational scale, cost structure and regulatory traction as it competes directly with Tesla and Alphabet.

BIDU’s Price Performance, Valuation & Estimates

Baidu’s shares have appreciated 49.2% in the past six months, underperforming the Zacks Internet - Services industry’s jump of 76.1% but beating the Zacks Computer and Technology sector’s growth of 28.4%.

BIDU’s Price Performance

From a valuation standpoint, BIDU’s forward 12-month price/earnings ratio is 20.09X, which is below the industry average of 29.44X. BIDU has a Value Score of C.

BIDU’s Valuation

The Zacks Consensus Estimate for BIDU’s fourth quarter 2025 earnings is pegged at $1.5 per share, down by 5 cents over the past 30 days, indicating a 42.97% year-over-year decline.

Baidu, Inc. Price and Consensus

Baidu, Inc. price-consensus-chart | Baidu, Inc. Quote

Baidu currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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