Baidu's Advertising Weakness Overshadows AI Cloud Strength -- Market Talk

Dow Jones

May 23, 2025

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)

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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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 04:59 ET (08:59 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Baidu's Advertising Weakness Overshadows AI Cloud Strength -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBaidu's Advertising Weakness Overshadows AI Cloud Strength -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-05-23 16:59</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 23, 2025 04:59 ET (08:59 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1023057109.AUD","symbol_name":"BGF CHINA \"A2\" (AUDHDG) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2537863011","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2537863011","pubTimestamp":1747990740,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. 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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) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  May 23, 2025 04:59 ET (08:59 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}