BlackRock buys more shares of Baidu, sending the stock soaring

Yahoo Finance's Seana Smith breaks down why Baidu stock is soaring today.

Video Transcript

SEANA SMITH: All right, let's take a look at some of the winners and losers of the day. First up, I want to take a look at Baidu because shares popping today after an SEC filing revealing the asset manager BlackRock has upped its passive stake in the company to 6.6% as of last quarter. That's up from about 5% stake a year ago. You're looking at gains of just about 13%.

And, Dave, this news coming after we certainly have seen this rising interest in ChatGPT, in AI. Baidu has been named by Bloomberg earlier this week. There was a report out that they're planning to roll out a ChatGPT-like service next month, which is going to be huge here for the company if, in fact, that is true.

DAVE BRIGGS: Yeah, Reuters says that is indeed true, rolling it out by March. It'll be a standalone service and then folded into their own search over time.

Also a winner here, as related to that, could be Pinduoduo. Finished the day up more than 5%, largely on the heels of Baidu.