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$80) TP Change]: Baidu’s Problem Is Not All Cyclical…Maintain SELL

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>We expect Baidu (BIDU) to report C3Q24 revenue, GAAP operating profit and GAAP net income (3.6%), (4.1%) and (2.3%) vs. consensus. </li>
<li>Weak macro and restructuring of AI advertising continued to affect BIDU negatively;</li>
<li>However, stimulus policy in C3Q24 shall lead to rebound in GDP and thus advertising. We raised 2024-25 estimates and raised TP by 5%.</li>
</ul>


We expect Baidu (BIDU) to report C3Q24 revenue, GAAP operating profit and GAAP net income (3.6%), (4.1%) and (2.3%) vs. consensus. 
Weak macro and restructuring of AI advertising continued to affect BIDU negatively;
However, stimulus policy in C3Q24 shall lead to rebound in GDP and thus advertising. We raised 2024-25 estimates and raised TP by 5%.


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