Baidu Bulls Retreat as Earnings to Highlight Firm’s AI Challenge
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Optimism about Baidu Inc.’s US-listed shares is waning ahead of the company’s third-quarter results, as traders debate whether the search engine’s artificial intelligence efforts will pay off.
Baidu shares’ buy-equivalent rating ratio has fallen to 74% this month, the lowest level since 2020, from 90% in May, according to data compiled by Bloomberg. Sentiment has turned increasingly cautious since the company said its first-quarter revenue grew at the slowest pace in more than a year as it struggled to monetize its lead in AI.