Will AI Spending Boost Baidu’s Earnings Prospects?

After rallying to a 4-1/2 month high late last month, Baidu Inc depositary receipts (ADRs) (BIDU) dropped to a 2-1/2 month low today as China’s struggling economic outlook weighs on the stock. Citigroup, China International Capital, and Daiwa Capital Markets, are among analysts that have cut their earnings estimates for Baidu. Tuesday’s second-quarter earnings results from Baidu are expected to show a slowdown in adjusted net income growth as the company competes with Alibaba Group Holding (BABA), JD.com (JD), and Tencent Holdings Ltd (TCEHY) for dominance in China’s artificial intelligence (A…

Read More