Baidu’s Results May Shake Optimism Over China AI: Tech Watch
- Citi, CICC and Daiwa among brokers lowering earnings estimates
- Ernie Bot delays, sluggish economy dragging Baidu outlook
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Investors betting on an extension of Baidu Inc.’s market-beating rally may be due for a reality check as concerns about the sluggish Chinese economy and setbacks from a key segment of its business deepen.
Citigroup Inc., China International Capital Corp. and Daiwa Capital Markets Hong Kong Ltd. are among brokers that have lowered their earnings expectations in recent weeks ahead of the search engine provider’s second-quarter results due Tuesday, with analysts expecting a slowdown in adjusted net income growth.