0328 GMT - Baidu's advertisement business will face continued pressure as the tech giant accelerates its AI search penetration, Daiwa analyst John Choi says in a research note. Baidu's AI search penetration could go beyond 50% by the end of 2Q, but with very prudent monetization progress, he says. Therefore, Daiwa lowers Baidu's 2025 ads revenue forecast to an on-year decline of 7% due to the temporary trade-off for AI search transformation in the next two quarters. "We think it will be critical for Baidu to demonstrate that it could monetize the new product efficiently," the analyst says. Monetization of its AI product remains a key factor for the re-rating of Baidu's shares, he adds. Daiwa maintains an outperform rating on Baidu with its target price unchanged at HK$93.00. Shares are last at HK$83.55. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
May 21, 2025 23:28 ET (03:28 GMT)
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