The Genius of the Baidu Apollo Project
FOREX INVESTORS BUZZ Baidu Apollo Project The best companies in the world build platforms, not products (see Facebook Inc (NASDAQ:(FB), Google—aka Alphabet Inc (NASDAQ:(GOOG) and Amazon.com, Inc. (NASDAQ:(AMZN)). This is true in America and around the world. For example, Baidu Inc. (NASDAQ:(BIDU) recently launched the “Baidu Apollo Project” for driverless cars.
It is a platform for self-driving technology and, to be frank, it could send Baidu stock price soaring over the next few years.
There are 50 members in the Baidu Apollo alliance, including four Chinese automakers and U.S. tech giants like Microsoft Corporation(NASDAQ:(MSFT) and NVIDIA Corporation(NASDAQ:(NVDA).
Products and Platforms: A World Apart
In my opinion, products and platforms sit at two opposite ends of a spectrum. There’s a pretty big middle ground in between. And where companies lie on this spectrum can tell you a lot about them.
For instance, Alphabet Inc is definitely a platform company. Its “Android” operating system is open to dozens of manufacturers, all of which can exercise their creativity in adapting the system for their own needs. But those are not “Alphabet” or “Google” branded smartphones.
They are sold by Samsung Electronics Co Ltd, HTC Corporation, Xiaomi, and others.
Google is more fundamental than that. It lets others build, but only with the building blocks that it owns. And look how it paid off for Google’s stock price:
Baidu Apollo Project
Products, on the other hand, are things like toothbrushes or toothpaste. Both are necessary items that sell extremely well, but those markets are more competitive. Brand names matter a lot more in those areas of business.
Can Baidu Really Pull This Off?
Short answer: yes, I think Baidu can pull this off.
The cumulative power of 50 different companies can help them narrow the race with Google and Tesla Inc (NASDAQ:TSLA), but it’s more than that. I don’t think people realize how big Baidu really is.
Baidu is the Google of China. It’s an all-powerful, omnipresent Internet search giant with boatloads of money. Go to the streets of Beijing and ask someone if they know Baidu. They’ll look at you like you’re crazy!
It’s a ruling power of the tech industry there, which means it has the resources to compete in the autonomous driving industry. That said, I think that U.S. investors doubt Baidu because they aren’t that familiar with it.
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