Overview

• Baidu Q3 revenue declines 7% yr/yr, driven by decreased online marketing revenue

• Company reports Q3 net loss due to impairment of long-lived assets

• Revenue from AI-powered businesses grew over 50% yr/yr, cushioning marketing softness

Outlook

• Company did not provide specific financial guidance for future quarters or full year

Result Drivers

• AI BUSINESS GROWTH - Revenue from AI-powered businesses grew over 50% yr/yr, cushioning marketing softness

• AI CLOUD EXPANSION - AI Cloud maintained solid growth momentum, driven by broadening enterprise adoption of AI products and solutions

• APOLLO GO EXPANSION - Apollo Go accelerated scaling of driverless operations and expanded globally, including entry into Switzerland

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Baidu Inc is $144.67, about 21.1% above its November 17 closing price of $114.11

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn4kbHYba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)