BIDU 1Q25 Preview: Slightly Lowering BIDU Core Ad Estimates

What’s New: We nudge down our 1Q25 Baidu Core ad rev estimates partly to reflect the gradual recovery in ads amid challenging macro and lack of meaningful monetization in gen-AI search. Analysts: Jin Yoon

China Internet: Navigating headwinds and uncovering opportunities upon tariff pressures.

Chinese internet companies’ share prices have dropped 10-30% mtd following the implementation of incremental tariffs from the US. Chinese internet companies have limited business exposure to the US except for PDD’s Temu. However, the 34% tariffs announced by China on all US imports could have potential implications for China mega-caps’ AI capex in relation to US chip imports. We prefer domestic-focused plays which stand to benefit from domestic policy stimuli, with Southbound inflow to be a key driver. Maintain MARKET WEIGHT.

Bible 4Q24 – Mobility & Delivery: Healthy underlying growth

Today, we are publishing the Mobility & Delivery section of our 26th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 140 companies we track, providing an update on our key perspectives and convictions. Later this week we will publish sections on Memory, Semicap, Enterprise IT, PC. Ride-sharing bookings decelerated slightly but still posted robust double-digit growth, while delivery bookings accelerated and EBITDA margins expanded across the board. We expect these fundamentals to persist thi...

CHTR: quick thoughts following the 1Q25 call

We just wrapped the earnings call (which was brief; efficient). This will be a similarly brief and efficient note that touches on the drivers of the difference in broadband trends between Comcast and Charter, where we think EBITDA growth expectations will go following results, and what it means for repurchases and valuation. We also touch on tariff and macro impact briefly.

Mobileye 1Q25: legacy business healing, SuperVision adoption slow, important win with Uber. Buy, $20 TP.

Google 1Q25: Compute is king and calls for a re-platforming

Google reported 1Q25 yesterday. See our updated perspective on cloud spending, capex and technology infrastructure.