New Street Research - Baidu Inc Sponsored ADR Class A (K3SD) BIDU 2Q24 Preview: Nudging Down Estimates on Slower Ad Recovery

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New Street Research

Jin Yoon

BIDU 2Q24 Preview: Nudging Down Estimates on Slower Ad Recovery

What’s New: We nudge down our 2Q and 2H Baidu Core top-line estimates as ad recovery could be slower than anticipated partly due to macro and reconstruction of gen-AI search. Margins could remain stable as Baidu could continue to be prudent in its overall investments.

Analysts:
Jin Yoon

15/07/2024 1 EN

Underlying

Baidu Inc Sponsored ADR Class A

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US0567521085 Singapore Exchange Cayman Islands

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Pan European Telecom Services and Cable

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Analysts

Jin Yoon

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New Street Research

BIDU 3Q24 Results: Monetization of Gen-AI Search Could Take Time to Materialize

What’s new: Baidu’s reported 3Q24 top-line results that were largely in line with consensus and our expectations. Baidu Core ads could remain challenging in 4Q partly due to macro and limited monetization related to gen-AI search. AI Cloud rev growth could accelerate in 4Q partly driven by gen-AI related revs. We lower our PT from USD130 to USD110 amid lowered outlook. Our updated PT of USD110 implies 10.6x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon

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BIDU 2Q24 Preview: Nudging Down Estimates on Slower Ad Recovery

BIDU 3Q24 Results: Monetization of Gen-AI Search Could Take Time to Materialize

Baidu Inc (9888 HK/): 3Q24: Earnings miss on AIGC investment; expect subdued online ad revenue growth in 4Q24.

Greater China Daily: Friday, November 22, 2024

Alphabet (GOOGL, Buy, $213 target) Forget Chrome, 3P payments are the heart of the issue

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

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