Baidu 3Q17: Earnings Beat but Stock Falls 11% as Guidance Disappoints

Week that Was in China @Smartkarma: Party Congress, Aircraft, Baidu, Sportswear and More Children

Baidu 2Q17 Earnings: EPS Smashes Consensus on Tighter Spending; 3Q17 Guidance Slightly Ahead

Baidu 3Q16 Earnings: Adjustments Uncover Weak Core Performance; Guidance Disappoints

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Equity Bottom-Up

<p>Whilst positive sentiment built up after the company’s impressive AI developers’ conference, we remain cautious on near to mid-term monetization at <a href="https://www.smartkarma.com/entities/179" target="_blank" data-smartkarma-citation="entities:179:1">Baidu (BIDU US)</a> while competition for advertising spend from social media remains a challenge.</p><p>Baidu beat expectations in its recent 2Q17 results as other service revenue (+126% YoY) exceeded forecasts although ad sales (+6% YoY) disappointed.  3Q revenue guidance was driven by better than expected growth in iQiyi subscription services and lower…</p>

Whilst positive sentiment built up after the company’s impressive AI developers’ conference, we remain cautious on near to mid-term monetization at Baidu (BIDU US) while competition for advertising spend from social media remains a challenge.Baidu beat expectations in its recent 2Q17 results as other service revenue (+126% YoY) exceeded forecasts although ad sales (+6% YoY) disappointed.  3Q revenue guidance was driven by better than expected growth in iQiyi subscription services and lower…

Baidu Beats Expectations in 2Q17 but Too Early to Cheer. We Remain at Neutral.