BIDU

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09888

K3SD

<p>Baidu's stock fell 4.4% following its 2Q 2024 earnings report, missing revenue targets but beating EPS estimates. The marketing segment faced a 2% YoY decline, while AI and autonomous driving drove some growth, especially with the Apollo Go service seeing 899,000 rides—a 26% increase. However, adjusted EPS fell 7% YoY, and core revenue streams stagnated, raising concerns about long-term sustainability amid economic challenges. Despite some positive results in AI and cloud services, lack of growth in online marketing suggests deeper issues in the foundational business model.</p>

- Baidu (NASDAQ: BIDU) stock fell 4.4% post-earnings, missing revenue targets but surpassing EPS estimates. Core marketing struggled, but AI and autonomous driving segments showed growth, aiding overall performance.
- CEO Robin Li highlighted AI's positive impact on revenue growth, particularly in cloud services, and the significant expansion of Baidu's autonomous driving division, Apollo Go.
- Despite challenges in core revenue streams, Baidu's strategic shift towards AI is evident, emphasizing the company's commitment to AI-driven growth despite stagnation in online marketing revenue.

The Good, Bad and Ugly of Baidu’s 2Q 2024 Earnings