Citigroup released a research report stating that it expects Baidu (BIDU.US) to announce its third-quarter performance from mid-November to late November. The bank adjusted its forecast for Baidu to reflect the continued weak advertising demand, mainly due to cautious advertising spending by key advertisers, and the dilution effect of the transformation of artificial intelligence search. The bank has adjusted its target price for its US stocks to $143 and maintained a "buy" rating.

The bank lowered its forecast for Baidu's core advertising revenue by 0.6%, adjusting its forecast for core advertising revenue to a 4.1% year-on-year decline (previously expected to drop by 3.5%), while lowering the forecast for AI cloud revenue by 4%, currently forecasting a 12.5% year-on-year increase (previously expected to increase by 17%). Due to weak advertising revenue and the fact that AI search has not yet reached a monetization stage, the bank expects profitability to face pressure, therefore lowering its forecast for core operating profit by 12.7%. In the fourth quarter, although government policy stimuli on the mainland may drive improvements in advertising spending sentiment, continued transformation challenges may drag down Baidu's core advertising revenue growth.