0859 GMT - Baidu's continued advertising weakness overshadows its strength in the AI cloud segment, according to Morningstar senior equity analyst Kai Wang in a research note. The company's overall revenue in 1Q was better than Morningstar's flat growth estimate, but online marketing revenue was weaker than expected and offset strength in the cloud business, Wang says. "We believe that ad performance will still dictate how investors view the stock near term, despite continued robust growth" and rising market share in AI cloud, Wang notes. Morningstar lowers its fair value estimate to HK$143.00 from HK$154.00, but notes that it remains undervalued as it isn't fully reflecting a recovery in the ad business. Shares closed at HK$83.10. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
May 23, 2025 04:59 ET (08:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。