Considering macroeconomic instability, reduced advertising b...

Considering macroeconomic instability, reduced advertising budgets in major industries, and advertisers shifting their budgets to new platforms such as Douyin and Xiaohongshu, Macquarie has lowered its earnings per share forecasts for Baidu by 4% and 6% for this year and next year, respectively. The target price has been reduced to 103 yuan. However, Macquarie still anticipates that generative AI will provide long-term growth momentum.

Macquarie believes that the financial impact of Apollo Go on Baidu is minimal and therefore does not include it in the valuation.