Fast Retailing Raises Full-Year Forecast After Uniqlo Owner Beats Q3 Profit Estimates 
Samsung Q2 Profit Hits Record on AI Memory Boom as Shares Tumble 
China 618 Smartphone Sales Drop 13% as Higher Prices Hurt Demand, Huawei Gains Market Share 
SoftBank Corp Partners With Sierra to Expand AI Customer Support Across Japan 
Oppenheimer Sees CNH Industrial as Top 2026 Agriculture Stock Pick on Dealer Consolidation Strategy 
Deutsche Bank Fined A$2 Million by ASIC Over OTC Derivatives Reporting Errors 
UBS Starts CarTrade Tech With Buy Rating, Sees Strong Earnings Growth and ₹4,000 Target 
DOJ Grand Jury Investigates UAW President Shawn Fain Ahead of Union Election 
Yaskawa Electric Shares Slide as Weak Profit Overshadows Strong AI Demand 
Stellantis Q2 Vehicle Shipments Rise 10% as North America Drives Growth 
Goldman AM Sees Strong Buyout Opportunities in Japan, South Korea and Australia 
Meta Says States Seek $1.4 Trillion in Penalties Over Teen Social Media Addiction Lawsuit 
Samsung Chairman Lee Jae-yong Expected to Meet Nvidia CEO Jensen Huang on AI and Chip Partnership 
Mastercard Explores Sale of Majority Stake in UK Payments Firm Vocalink: Report 
EU to Propose New Rules Limiting Children's Access to Social Media 
Wolfspeed Sues Navitas Over GaN and SiC Patent Infringement 
Baidu Inc (NASDAQ: BIDU, HK: 9888) shares dropped 3.3% to HK$83.30 in Thursday’s Hong Kong session, underperforming the Hang Seng index, which fell 0.6%. The decline came despite Baidu posting better-than-expected first-quarter earnings, as investors focused on weak advertising revenue and rising costs linked to AI expansion.
The Chinese tech giant reported Q1 revenue of 42.45 billion yuan ($4.5 billion), surpassing Reuters’ forecast of 30.9 billion yuan. However, its core online advertising segment—still the largest revenue contributor—fell 6% year-over-year to 17.31 billion yuan, slightly missing expectations of 17.39 billion yuan.
While Baidu’s cloud business showed strong momentum and partially offset ad revenue declines, analysts at Citi and Goldman Sachs flagged concerns. Both noted that Baidu’s growing investments in artificial intelligence could pressure profit margins in the near term. Consequently, both firms trimmed their price targets but retained Buy ratings, citing long-term AI potential.
Baidu is rapidly evolving into a key AI player in China, fueled by heightened demand since the launch of DeepSeek in January. The company has consistently updated its AI models and is moving toward open-sourcing its AI framework, signaling further expansion. Goldman Sachs projects at least 25% growth for Baidu’s cloud unit in Q2, significantly outpacing competitors and supporting the firm's long-term bullish outlook.
Despite short-term earnings pressures, Baidu’s AI and cloud strategies are central to its future, as the company pivots from traditional ad revenue to AI-driven growth. The market remains cautious, but analysts see upside potential if AI gains continue to accelerate.
