Baidu, Inc.: Generative AI & Search Transformation Driving Our Bullishness!

Baidu’s third-quarter 2024 financial performance presents a complex picture, showcasing both opportunities and challenges that shape the company’s investment thesis. The company reported total revenues of RMB 33.6 billion, reflecting a 3% decline year-over-year. However, Baidu Core’s revenue remained stable at RMB 26.5 billion. The online marketing revenue slipped by 4%, primarily influenced by the challenging macroeconomic environment and transformations within Baidu’s AI-driven strategy.