Ticker Reports for February 18th
DeepSeek IPO Remains Far Off—Investors Eye 4 Chinese AI Stocks
The introduction of the cutting-edge, chip-efficient AI chat model DeepSeek sent markets into a frenzy in late January, sparking an American AI sell-off. Featuring twice the computing power at a fraction of the cost of models like ChatGPT, the introduction of DeepSeek was particularly painful for chip manufacturer NVIDIA Co. (NASDAQ: NVDA), whose shares fell more than 14% on the date of DeepSeek’s introduction.
While a DeepSeek IPO isn’t currently on the calendar, investors are turning their attention to other hidden Chinese AI picks before they boom onto the global scene. These four top Chinese tech stocks provide you with access to developing AI technology without waiting for DeepSeek to go public.
Qifu Technology Combines Fintech With AI
Credit-driven service provider Qifu Technology (NASDAQ: QFIN), one of the leading providers of online credit services to the Chinese market, has seen a spike in investor interest after posting higher-than-expected earnings in late 2024.
Levering credit data and AI advancements, QFIN is in a unique position to rally. The company recently upgraded its AI co-pilot system, achieving an accuracy rate of 98.8% in key information extraction for loan collection. It also offers a solid dividend yield of 2.67%, with an annualized three-year dividend growth rate of 61.53%.
While analysts give Qifu Technology a Buy rating, there are signs that the most recent Chinese AI rally has caused the stock to be temporarily overvalued based on fundamentals. Analysts predict an estimated one-year 15.27% downside from its current price of about $44 per share. Short interest increased by 2.9% since last month, though only 1.80% of shares were shorted in February of 2025.
Searching for AI Breakthroughs With Baidu
If you’ve never heard of Baidu Search, you might become familiar with it soon through American news headlines. Internet service provider Baidu (NASDAQ: BIDU) recently announced that it will be offering its ChatGPT-style Ernie AI chatbot for free beginning in April 2025, previously requiring a paid subscription. The next generation of its AI model will be released in June, according to a post made on the company’s official WeChat channel.
Analyst forecasts for Baidu remain optimistic despite an average Hold rating, with a potential 14.98% upside. Short interest is down 2.56%, and its P/E ratio is about half the industry average at 11.93. This could indicate that now is an opportunistic time to get in on Baidu before the next generation of its AI chatbot is released.
PDD Hunts eCommerce AI Advancements
Best known as the parent company behind TikTok-favorite shopping platform Temu, PDD Holdings (NASDAQ: PDD) is focusing on optimizing online shopping through AI with sudden, positive initial results. It posted earnings over $20 per share above expert estimates, driving a steady upward trend in stock prices since January 2025, continuing into February.
Expert estimates for PDD also indicate investor confidence, with a Moderate Buy rating on average. It holds a consensus price target of $173.40 per share, representing a 39.66% potential upside. If you’re interested in investing in companies like Amazon.com (NASDAQ: AMZN) with an AI edge, PDD Holdings could be a strong long-term play.
Alibaba Continues to Dominate Chinese AI Interest
No list of AI innovators is complete without mention of internet and e-commerce giant Alibaba Group (NYSE: BABA). AI investor interest in the stock surged on Valentine’s Day when Apple (NASDAQ: AAPL) unveiled that it had selected Alibaba’s AI for its next mobile phone update. Apple’s selection of Alibaba is a nod to its unique model, beating out other Chinese AI superstars like DeepSeek and ByteDance for the contract.
Investment analysts remain cautious of BABA’s pricing, even in light of this announcement. It maintains a consensus price estimate of $115.86 per share, representing a decrease in price of about 7% from its current share price of $124.73. Recent short interest continues this trend, with an 18.34% increase in share interest since the last month.
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3 Travel Stocks That Show the Travel Boom Is Far from Over
In December 2024, the travel industry hit an important milestone, at least in terms of air travel. That is, traffic in many continents exceeded 2019 levels for the first time since the 2020 pandemic. One of the key reasons for this is the return of the business traveler.
Total U.S. travel spending is expected to reach $1.35 trillion in 2025, which would be a gain of 3.9%. And by 2028 U.S. spending is expected to grow to $1.46 trillion by 2028. And global travel spending is expected to come in even stronger in 2025 at around 9%.
But at a time when investors are paying a premium for many stocks, which travel stocks are set up to capitalize on the travel boom? Recent and upcoming earnings reports show three stocks that are good candidates to continue to reward investors.
Expedia Bounces Higher and May Have Further to Grow
Heading into its fourth-quarter earnings report on February 6, shares of Expedia Group Inc. (NASDAQ: EXPE) were down about 8% in 2025 as investors braced for weak results. Expedia delivered the opposite, with solid growth in key metrics such as room nights, gross bookings, revenue, and EBITDA margins.
The company also offered a bullish outlook for 2025 and guided to gross booking and revenue growth in the 4% to 6% range. Analysts project 26% earnings growth. The company also plans to continue its share buyback program.
And, in news that will delight income investors, Expedia is reinstating its dividend which it suspended in 2020. Chief Executive Officer (CEO) Ariane Gorin said the reinstatement “reflects our confidence in our long-term outlook and commitment to shareholder returns.”
That sent EXPE stock soaring 15%, but there may be more upside to come. Analysts have been raising their price targets since the earnings report. Oppenheimer and B Riley have been the most bullish, with a price target of $235.
Marriott’s Long-Term Growth Story Remains Intact
Marriott International Inc. (NASDAQ: MAR) stock is down over 6% after it released its earnings report. The report was fine, with revenue and earnings both coming in ahead of estimates, but investors were spooked by weak guidance for the coming quarter. Travel stocks like Marriott fall into the broader category of consumer discretionary stocks, which continue to lag the market.
An interesting note in Marriott's earnings commentary was that RevPar was down on Monday, Tuesday, and Wednesday, but there was strong demand for the rest of the week. It also said that small—and medium-sized business travel is back in a big way, but large corporation travel continues to lag.
However, this could be an example of why investors and traders think very differently. Analysts are raising their price targets. That means even though MAR stock is trading close to the consensus estimate from analysts followed by MarketBeat, there appears to be much more upside for the hotel stock.
Viking Holdings Stands Out in 2025’s Travel Sector
Viking Holdings Ltd. (NYSE: VIK) is one of the shining stars in 2025. The cruise line distinguishes itself from other cruise lines by targeting what it brands the “sophisticated traveler.” The company’s cruises are defined by offering cultural experiences for relatively affluent travelers. To that end, its fleet of ships does not have casinos and is restricted to passengers over 18.
Viking went public in 2024, but it’s already begun posting profitable earnings to match its growing revenue. That’s reflected in the VIK stock price, which has been up 51% in the six months ending February 14.
Bookings may not be the problem, but the valuation may be. Investors are paying a premium for Viking stock, which means that a pullback is likely if there’s any weakness when the company reports earnings on February 18. Investors thinking of getting involved should wait until after the report before making a decision on VIK stock, which is trading 12% above the consensus price on MarketBeat.
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Small-Cap Surge: 3 Stocks Ready to Ride the Market Rotation
When the stock market seems to be on a roll, trending ever so higher without much interruption, there comes a point when the excess returns begin to concentrate in a single area while leaving most other worthy names behind. Today, as the broader S&P 500 hovers near its all-time high prices, a different area of the stock market (and the economy) is beginning to catch up. This run could lead investors to fantastic portfolio risk-to-reward setups; here’s where.
Small-cap stocks, as measured by the performance in the iShares Russell 2000 ETF (NYSEARCA: IWM), have fallen behind the S&P 500 by just over 1% during the past month. However bearish this may seem in the short term, one thing should be noted by watchful investors. On February 13, 2025, small caps outperformed the S&P by over 0.6% in a single trading session. This means that, on good days, small caps are beginning to see more momentum than large caps.
The lesson to be taken from history is that when good days favor certain areas in the market over others, investors should pay attention to why that is and whether it is set to keep repeating. Recent trade tariffs have shifted the focus to domestic businesses, a tailwind for small caps, and opportunities in names like Denny’s Co. (NASDAQ: DENN), Bath & Body Works Inc. (NYSE: BBWI), and even FMC Co. (NYSE: FMC) for reasons that will become clear in just a bit.
Free Cash Flow Efficiency Makes Denny’s Stand Out
Now that it has become clear, through tariffs and a recent shift in inflation readings, that only businesses with strong financial performance are the ones that matter, here is one name in the retail sector that might be worth a look. Denny’s stock, as unassuming as it may be, has double-digit upside potential due to this factor.
The company’s financials show a gross profit margin of just over 34%, significantly above the rest of the restaurant industry. With ample cash to keep from each sale, a 4.5% net income margin is also impressive, but that’s not why investors should look into this stock.
It’s all about the free cash flow (operating cash flow minus capital expenditures). Denny’s operates on a free cash flow margin of 5%, which is not the most exciting but still enough to make it stand out compared to peers. Here’s the best part: investors can buy this free cash flow for only 10.0x on multiple bases, which is considered cheap.
That might be why Wall Street analysts feel comfortable placing a consensus price target on Denny’s stock of up to $8.10 per share today, which calls for a net upside of as much as 67% from today’s prices. The rotation into small caps could have Denny’s at the front of it.
Bath & Body Works Stock’s Defensive Offer
Most would think that personal care and such products would be part of the consumer discretionary sector, but in reality, Bath & Body Works' products fit the defensive category a lot more. Considering that it probably doesn’t matter whether the economy is booming or busting, consumers will have room in their budgets for these products.
This is why the company’s financials showcase a 44% gross margin rate to get the company into standout territory compared to peers in retail, not to mention a return on invested capital (ROIC) rate of over 30%. ROIC matters because it’s what allows a company to compound value onto itself, the stuff that value investors like Warren Buffett always look for.
Investors shouldn’t be surprised to see analysts at Wells Fargo place an overweight rating on Bath & Body Works stock as of January 2025, which came along an implied upside of 31.5% through their $48 a share price target.
Why Institutions Flew Into FMC Stock
Recent price data, through the producer price index (PPI) report, showed the market that the price of eggs and fertilizers is slightly higher than usual. To fix this, there have been talks of implementing new technology to make the agriculture sector more efficient and capable of fulfilling new capacity demands.
This is where FMC stock comes into play, as a chemical maker and a vital player in the domestic farming industry through its fertilizer products. By trading at only 54% of its 52-week high and being exposed to these tailwinds in the United States, some institutional investors saw enough reason to start gaining some exposure to it.
Such as those from the Vanguard Group, who decided to boost their holdings in FMC stock by as much as 1.2% as of February 2025. This may not seem like much on a percentage basis, but it was enough to bring the group’s position to a high of $743.3 million today, or 12.3% ownership in the company.
Where Should You Invest $1,000 Right Now?
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