Baidu stock jumps a day after unveiling its Ernie Bot AI
The Yahoo Finance Live team discusses the jump in stock for Baidu after the unveiling of Ernie Bot AI.
SEANA SMITH: It's time for our Triple Play, three stocks that we're watching in the final half hour of trading. We've got Baidu, Warner Brothers Discovery, and XPeng.
Let's kick it off with Baidu because those shares bucking the downward trend that we're seeing in the broader market today, actually up just about 5 and 1/2 percent. The gain here coming after the company unveiled its AI chatbot, which they called Ernie. While the service is not available for the public just yet, Baidu executives did say that Ernie does have the ability to understand the Chinese language, also write. And it can even do mathematical calculations. Probably sounds very similar to the capabilities of ChatGPT.
Well, the Street, it looks like it was pretty impressed with Ernie, at least the first look at it. Bank of America saying that it tested Ernie and was, quote, "satisfied with the results." Jefferies saying that the company's, quote, "early mover advantage" stands out to them. So once again, Baidu the latest company here, Allie, where we're seeing all that excitement around AI, around the chatbot.
We had Microsoft, Salesforce, Google, just some of the names here that are putting more of an emphasis on this space. And at least, it looks like for now, the Street rewarding them for that.
ALEXANDRA CANAL: Yeah, and it's going to be interesting how this eye race plays out between China and the United States. You just mentioned some of those companies that are heavily leaning into their own artificial intelligence offerings.
I will say that I did read-- there were some reports of users and analysts that tested Ernie. And the fact that there wasn't a live demo during Baidu's presentation, perhaps that suggested it didn't live up to ChatGPT. So it's clear the stakes could never be higher. The expectations are incredibly high. All eyes are going to be on these products. And I think we're going to see a lot of serious developments over the next several years.