By Clarence Leong
Baidu Inc. is scheduled to report outcomes for the third quarter on Tuesday. Here's what you might want to know:
NET PROFIT FORECAST: The Chinese language search-engine big is anticipated to submit a internet revenue of 4.04 billion yuan ($567.4 million) for the quarter ended Sept. 30, based on a FactSet ballot of analysts. That might be a major turnaround from the online lack of CNY16.56 billion recorded a yr earlier, which was pushed by a considerable noncash loss in long-term investments.
REVENUE FORECAST: Baidu's income is estimated at CNY31.74 billion for the interval, based on the FactSet ballot. That may symbolize a 0.6% drop from the third quarter of final yr.
WHAT TO WATCH:
--AD REVENUE: Baidu's online-marketing enterprise, which contributes the biggest share of income, might weaken within the quarter, as Covid-19 outbreaks disrupt advertising actions. Chinese language tech heavyweight Tencent Holdings Ltd. final week mentioned its online-advertising income declined 4.7% from a yr earlier within the third quarter, however confirmed an enchancment from the second quarter.
--AI CLOUD: Amongst Baidu's strongest progress engines in current quarters is its artificial-intelligence cloud enterprise, although some analysts count on the pandemic to additionally blunt its momentum. AI cloud income expanded 45% on yr within the first quarter and 31% within the second quarter, however Nomura analysts forecast progress to gradual to 22% within the third quarter. They cite causes together with corporations taking a conservative stance on adopting cloud expertise amid macro uncertainties and Covid-19 restrictions inflicting delays in undertaking completions.
Write to Clarence Leong at [email protected]
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