China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Baidu, Inc. (BIDU US, SELL, TP US$84) Preview]: C3Q24 Preview: Slump in Economy Exacts Its Toll

A Comparison of Tesla’s Cybercab and Baidu’s Apollo Shows the Latter Must Improve

[Baidu, Inc. (BIDU US, SELL, TP US$78) TP Change]: C3Q24 Review: No Respite in Going Ex-Growth

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>BIDU reported C2Q24 top line, non-GAAP operating profit and GAAP net income inline, 5.6% and 7.6% vs. our estimate and inline, 10% and 8.4% vs. consensus. </li>
<li>Weak economy is only part of the problem. Weak monetization exists across the entire product line. </li>
<li>We cut the TP to US$80 and reiterate SELL rating.</li>
</ul>


BIDU reported C2Q24 top line, non-GAAP operating profit and GAAP net income inline, 5.6% and 7.6% vs. our estimate and inline, 10% and 8.4% vs. consensus. 
Weak economy is only part of the problem. Weak monetization exists across the entire product line. 
We cut the TP to US$80 and reiterate SELL rating.


[Baidu, Inc. (BIDU US, SELL, TP US$80) TP Change]: Baidu’s Problem Is Not All Cyclical…Maintain SELL