Baidu sheds $11 billion as ad slump outpaces fast-growing AI business in 2024

Baidu's market value dropped by about $11 billion after its share price fell nearly 20% amid weak core advertising revenue and slower-than-expected AI monetization. In 2024, Baidu Core online marketing revenue declined 18% to RMB 15.3 billion, while total company revenue slipped 7% year over year to RMB 31.2 billion and earnings per share contracted 56.75%. Although AI Cloud, AI-native marketing and AI applications posted strong growth, investors questioned whether these units can offset the shrinking ad business and asset impairments of RMB 16.2 billion. Some shareholders, including HHLR Advisors, exited large positions, and Baidu's efforts to restore confidence with a first dividend and a three-year stock buyback plan of up to $5 billion have yet to reverse sentiment.