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Baidu has launched a significant overhaul of its search experience with its ERNIE-powered AI Search, transitioning from traditional hyperlink-based results to intelligent, multimodal AI-generated responses. By July, over 90% of Baidu App’s monthly active users were engaging with this new system, indicating rapid adoption. However, concerns about content quality and accuracy persist as the company navigates this substantial transformation.
In the third-quarter 2025, Baidu’s revenues are estimated to reach $4.31 billion, reflecting a 9.96% decline year-over-year. Additionally, the Zacks Consensus Estimate for earnings is $1.32 per share, down by a penny in the past month, representing a 44.3% year-over-year decrease. Baidu faces increasing competition from Alphabet and Microsoft, who are enhancing their generative AI features in search.
Baidu’s share price has risen 38.8% year-to-date, surpassing industry growth averages of 32.1% and 23.9% in the Internet – Services and Computer Technology sectors, respectively. The company’s forward price/earnings ratio stands at 14.24x, below the industry average of 24.41x.
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