0457 GMT - Baidu's advertising revenue likely to improve in 2Q 2025, according to Citi analysts Alicia Yap in a research note. Core online advertising revenue declined 7% year-on-year in 4Q but that was in line with Citi's expectation. While 22% of all of Baidu's search result pages had AI-generative content in 4Q, monetizing that may not happen until mid-year as the company is prioritizing user experience over profit, Citi says. The negative impact from Baidu's generative AI search transformation is likely to have reached a floor in 4Q 2024, paving the way for a sequential improvement in search advertising revenue starting from 2Q 2025 after a seasonally soft 1Q, the analysts say. They keep a buy rating on the stock, with a target price of US$139.00. ADRs last traded at US$90.16. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
February 18, 2025 23:57 ET (04:57 GMT)
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