On August 24, BIDU-SW declined 3.27% in regular trading, trading at approximately HK$90.0/share with turnover of HK$160 million, extending post-earnings weakness.

The decline continues selling pressure following the company's Q2 earnings released on August 18. Total revenue came in at RMB 31.3 billion, down 4% year-over-year, marking the fifth consecutive quarter of top-line contraction. Net profit plunged 68% to RMB 2.3 billion, with EPS significantly missing consensus estimates. Capital expenditure surged nearly threefold, pushing free cash flow into negative territory.

Post-results, Morgan Stanley downgraded the stock to Underweight from Equalweight, slashing its ADR target price to $80 from $130. Citi and Jefferies also reduced their price targets. While AI cloud infrastructure revenue grew 50% YoY to RMB 7.3 billion and core AI revenue reached 50% of non-iQIYI revenue, heavy infrastructure spending continues pressuring profitability.

The broader Interactive Media sector declined in tandem, with TENCENT down 2.63%, KUAISHOU-W down 1.92%, and BILIBILI-W down 1.72%, though BIDU-SW led sector losses.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)