Baidu Q4 2024: Analyst Update Estimates Amid Jiyue EV Partnership Costs
With a firm price target of $120.00, US Tiger Securities kept its buy rating on Baidu shares on Thursday. Ahead of Baidu’s fourth-quarter 2024 reports, the company’s analyst, Bo Pei, released statements reaffirming confidence in the company’s stock and modifying profit and margin estimates. The changes include a one-time write-down and higher expenses related to Jiyue, Baidu’s joint venture for electric vehicles.
Baidu Faces 8% Ad Revenue Decline Amid Economic Challenges, Says Analyst
According to the analyst, Baidu Core’s advertising revenue will drop 8.0% year over year in the fourth quarter, which is consistent with the 3.5% loss that was previously predicted. This forecast comes as Baidu’s total revenue growth over the past 12 months has decreased to 0.93%. The prediction takes into account China’s continuous economic difficulties throughout that time, which probably reduced demand for advertising. The company’s income sources are also thought to have been further harmed by the rise of less lucrative AI-generated search results.
The company’s outlook on Baidu is still optimistic in spite of these difficulties, and the top-line projections have not changed. The focus on the buy rating suggests that the company’s judgment of Baidu‘s stock performance will continue to be expected to match.
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