$BIDU

Implied claim • moderate conviction • basis: fair value gap

And if we factor in the net cash at a current price of just under $97 and earnings per share of a good $3, we arrive at an adjusted PE ratio of under 10 or pretty much exactly 10, which doesn't seem particularly expensive given the opportunities you have and at the same time the well-known and well-positioned company.

Explicit claim • weak conviction • basis: market mispricing

And your reward for this incredible achievement, a 75% collapse in your net income. It's it's honestly a phenomenal contradiction. You look at one side of the ledger and you see this explosive futuristic growth >> and then you look at the bottom line and see a company whose um whose financial foundation is structurally fracturing under the weight of that very same growth.

Implied claim • weak conviction • basis: drawdown discount

But what's the catch here? Well, it's a Chinese stock and I'm of course talking about by dude, ticker symbol BU, who's also the leader in uh the search market, search market share throughout the country in uh China, just like Google is here of course in the states and elsewhere. Um but in recent years despite having you know very promising moments with big spikes in price uh right now the market really is treating this stock like it's almost uninvestable which to be fair a lot of people consider Chinese stocks in general to be exactly that and for good reason of course as you know foreign investors like any of us would have you know very little shareholder rights with Chinese companies. But given that BYU just reported earnings and the stock fell even more, I thought it'd be a good time to give you guys an update on this Chinese AI leader since we haven't done one in uh probably like one or two years or so. Um despite me actually owning a little bit of the stock myself. So uh let's once again take a look under the hood of BYU and let's break down exactly why the stock has been falling by so much despite holding so much future promise in their business and in tech.

Explicit claim • weak conviction • basis: drawdown discount

it has also been flat, with the last 5 years seeing drops of more than 40%and currently accumulating a fall of more than 37%this year.