Baidu Reports 3% Revenue Decline in Q3

Baidu has reported a 3% decline in its third-quarter revenue, totaling 33.6 billion yuan (approximately $4.6 billion), marking its largest contraction in two years. This decline is primarily attributed to a decrease in online marketing revenue, which fell 4% to 18.8 billion yuan, despite the stability of the 'Baidu Core' segment holding steady at 26.5 billion yuan. The company's net income rose to 7.6 billion yuan, reflecting a 14% year-on-year increase. Notably, Baidu is experiencing significant growth in its AI capabilities, with its Wenxin series model achieving 1.5 billion daily API calls in November, up from 600 million in August. CEO Robin Li emphasized the company's commitment to investing in AI technology despite current market pressures. The results fell short of analysts' expectations, contributing to a modest decline in Baidu's stock prices in both New York and Hong Kong markets.