Baidu Faces Earnings Pressure Despite Solid AI, Cloud Business

Dow Jones10-26 10:44

0244 GMT - Baidu still faces pressure despite its solid AI and cloud business, according to Deutsche Bank in a research note. DB expects Baidu's 3Q cloud revenue to exceed the bank's prior forecast on strong AI compute demand from embodied AI, autonomous driving and internet sectors. However, the advertising business could miss estimates on delayed monetization, DB says. "A revenue mix shift to lower-margin cloud business could pressure margins," DB says. Baidu is expected to report 3Q results in mid-November. DB broadly maintains its revenue forecasts for fiscal year 2026 and 2027 but cuts its adjusted net profit estimates by 15% and 14%, respectively. DB keeps a buy rating but lowers its target price to HK$162.00 from HK$136.00. Shares last traded at HK$74.85.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment