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Alibaba Group (BABA) reported first-quarter 2025 revenues of RMB236.4 billion, reflecting a 7% year-over-year increase, driven by an 18% growth in its Cloud Intelligence Group and continued triple-digit expansion in AI-related product revenues. In contrast, Baidu (BIDU) experienced only a 3.22% revenue growth to RMB32.5 billion during the same period, primarily due to struggles in its search business.
Alibaba maintains a strong financial position with RMB597.1 billion in cash, facilitating both aggressive shareholder returns and investment opportunities. The Zacks Consensus Estimate for its fiscal 2026 earnings is $10.62 per share, a 17.87% increase year-over-year. Conversely, Baidu’s earnings forecast for 2025 is $9.43 per share, indicating a 10.45% decline.
Year-to-date, Alibaba’s shares have surged 41.2%, while Baidu’s have only inched up by 0.9% amid investor concerns surrounding Chinese tech regulations. With Alibaba’s diverse revenue streams and demonstrated AI capabilities, analysts see it as the more favorable investment choice, currently holding a Zacks Rank #3 (Hold), compared to Baidu’s Zacks Rank #4 (Sell).
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