Baidu Sales Shrink for Third Consecutive Quarter on AI Lag

Baidu Inc. reported a drop in its revenue for the third consecutive quarter, underscoring the magnitude of weakness in its core advertising and AI businesses.

Revenue declined 4% to 32.74 billion yuan ($4.8 billion) for the December quarter, compared with an average analyst projection of 32.66 billion yuan. Adjusted operating profit fell 41% to 2.97 billion yuan, while analysts were on average looking for 2.66 billion yuan. Baidu’s American Depository Receipts fell 3.2% pre-market.