Baidu Stock Rallies on Strong Q3 Earnings and AI Growth
Baidu shares surged in pre-market trading after reporting better-than-expected Q3 results, with revenue of $4.38 billion (-7% YoY) surpassing estimates. The company's AI Cloud business and Apollo Go autonomous ride-hailing platform drove growth, offsetting declines in online marketing revenue.
Adjusted EPS of $1.56 (-33% YoY) beat consensus by 44%. Analysts maintain a Moderate Buy rating with a $126.27 average price target, suggesting 10.7% upside potential. Baidu's strategic pivot toward AI continues to bear fruit despite China's macroeconomic challenges.