Baidu Needs to Seize AI Lead to Erase Drop: Tech Watch
- Monetizing AI business seen key as competition ramps up
- Results Wednesday expected to show slow ad growth, high costs
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As China’s internet sector struggles with slower growth, Baidu Inc. faces a key test in demonstrating it can capitalize on its early-mover advantage in artificial intelligence to revive its slumping shares.
Baidu shares have dropped nearly 30% since July in Hong Kong, underperforming peers as the high costs of AI development compound investor concerns over the weak economy’s drag on advertising revenue. The company’s fourth-quarter earnings report due later Wednesday is expected to show sales growth flat compared with the previous quarter at 5.9%.