Baidu's fourth quarter financial report for 2023 shows that the overall performance is in line with expectations, and the improvement of the advertising system by AI technology is the key driver of revenue growth. However, Baidu's advertising business is experiencing sluggish growth and the problem of insufficient competitive advantages still exists. Although the smart cloud business has recovered, it mainly benefits from the low base effect. This article will conduct an in-depth analysis of Baidu’s financial report and explore the impact of AI technology on its future development and valuation.
Baidu released its financial report for the fourth quarter of 2023, which was generally in line with expectations. AI improvements to advertising systems are an important factor in its revenue growth. Baidu's advertising growth is weak and it faces the problem of insufficient competitive advantage. Baidu's smart cloud business has begun to pick up, but growth is mainly affected by low base dividends. Mr. Dolphin believes that Baidu’s valuation depends on the macro environment and traffic competition between platforms. AI is the decisive factor in whether Baidu’s valuation can be revitalized. The market is beginning to require companies with higher AI content to realize real cash, and Baidu needs more increments to make up for the impact of macro pressure. It is expected that AI can contribute about 5% to the growth rate of core business, which is crucial to the repair of Baidu's valuation.All in all, whether Baidu can seize the AI opportunity and achieve valuation restoration still requires continuous observation of its innovation and commercialization capabilities in the AI field. The application of AI technology will become an important driving force for Baidu's future development. Whether it can successfully meet the challenges is worth looking forward to.