Baidu Inc. is facing increasing doubt about its AI initiatives as traders prepare for its upcoming Q3 earnings report.
The buy-equivalent rating ratio for Baidu shares has dropped to its lowest level since 2020, down from 90% in May, according to Bloomberg data.
Investor sentiment has become more cautious after Baidu announced its slowest Q1 revenue growth in over a year.
This slowdown has raised concerns about Baidu's ability to effectively monetize its AI technology advancements, further fueling doubts about its future performance in a competitive market.