BIDU-SW (09888.HK) -3.500 (-3.156%) Short selling $233.11M; Ratio 19.182% (BIDU.US) 's 1Q24 revenue was in line with expectations, while its EBIT and net profit even beat expectations, mainly due to higher contribution from generative AI under business restructuring and recovery in deferred revenue from traditional advertising business, Goldman Sachs released a research report saying.
BIDU-SW's management expects the cloud computing business to accelerate growth, and operating margin to remain stable due to strong growth in demand for GPU cloud and enhanced deployment of generative AI with smartphone OEMs, Goldman Sachs said.
Goldman Sachs believed that the risk return level of BIDU-SW is currently favorable. Although the recovery prospect of its core advertising business lacks visibility, the accelerating growth in its cloud computing business and the increasing contribution of AI-related revenues could lead the Group to a slow but sure revenue recovery path.
Based on its latest valuation expectation, Goldman Sachs trimmed its target price on BIDU-SW from $157 to $150, with rating kept at Buy.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-20 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
