New Street Research - Baidu Inc Sponsored ADR Class A (K3SD) BIDU 3Q24 Results: Monetization of Gen-AI Search Could Take Time to Materialize

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New Street Research

Jin Yoon

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

22/11/2024 1 EN

Underlying

Baidu Inc Sponsored ADR Class A

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US0567521085 Singapore Exchange Cayman Islands

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Analysts

Jin Yoon

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

China Internet: 1H25 outlook shaped by implications of fiscal stimuli and US tariffs.

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

OpenAI: o3 is a game changer - a few steps away from AG. After the $1bn-to-train model, the $1m-inference model.

Airtel Africa (Buy, TP: GBp200, +85%) Second share buyback program

Takeaways from our conversation with VerticalScope (FORA-TO, Not rated)

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