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 (BIDU US, SELL, TP US$88) Preview]: Search Traffic’s Decline in Relevance the No.1 Issue

[Baidu, Inc. (BIDU US, SELL, TP US$92.5) TP Change]: What Can Change BIDU from SELL to a BUY?

[Baidu, Inc. (BIDU US, SELL, TP US$80) TP Change]: AI Monetization by How Much & At What Cost?

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 C1Q25 top line, non-GAAP operating profit and GAAP net income 4.5%, 8.6% and 58% vs. our estimates. Baidu Core revenue beat our estimate by 3.4%, </li>
<li>We believe BIC's outperformance stemmed from enterprise demand for AI adoption. Further, BIDU's integrated AI offering should allow it to capture AI's 2C revenue quicker. </li>
<li>We cut the TP from US$88 to US$85 and maintain SELL.</li>
</ul>


BIDU reported C1Q25 top line, non-GAAP operating profit and GAAP net income 4.5%, 8.6% and 58% vs. our estimates. Baidu Core revenue beat our estimate by 3.4%, 
We believe BIC's outperformance stemmed from enterprise demand for AI adoption. Further, BIDU's integrated AI offering should allow it to capture AI's 2C revenue quicker. 
We cut the TP from US$88 to US$85 and maintain SELL.


[Baidu (BIDU US, SELL, TP US$85) TP Change]: C1Q25: Accelerated AI Search Transition Releases Risk