Baidu Inc. 4Q25 Preview Summary Company Overview - **Company**: Baidu Inc (BIDU.O) - **Industry**: China Internet and Other Services - **Market Cap**: US$51.804 billion - **Current Stock Price**: US$149.53 (as of January 16, 2026) - **Price Target**: Increased from US$130.00 to US$150.00 Key Financial Metrics - **Core Revenue**: Expected at Rmb26.1 billion, a decline of 5.6% YoY [1][14] - **Operating Profit (OP)**: Expected at Rmb2.8 billion, down 40.5% YoY [1][4] - **Online Marketing Revenue**: Anticipated decline of 16% YoY [2][11] - **Non-Marketing Revenue**: Expected growth of 13.3% YoY [14] - **AI Cloud Revenue**: Projected to grow 5% YoY, significantly slower than 21% in 3Q25 [3][11] Core Insights - **Advertising Revenue**: Online ads revenue is expected to decline by 16%, an improvement from a 19% decline in 3Q25. AI-generated content is becoming more prevalent, with over 70% of mobile search result pages now featuring it, although monetization remains limited [2][11]. - **AI Cloud Performance**: The slower growth in AI cloud revenue is attributed to a high base from the previous year and slower growth in personal cloud services, which account for approximately 30% of AI cloud revenue [3][11]. - **Operational Efficiency**: Non-GAAP operating profit is expected to improve quarter-over-quarter due to efficiency enhancements and depreciation gains, with further savings anticipated from organizational restructuring [4][11]. Upcoming Events - **Dividend Announcement**: Potential announcement alongside 4Q results and renewal/expansion of the buyback program (previously US$5 billion) [5][11]. - **Kunlunxin Listing**: Anticipated Hong Kong listing within six months [5][11]. - **Robotaxi Value Unlocking**: Apollo Go has received fully driverless licenses in Dubai and Abu Dhabi, indicating progress in autonomous vehicle initiatives [5][11]. Valuation and Market Position - **Valuation Methodology**: The new price target of US$150 is based on a sum-of-the-parts approach, including a DCF model with an 11% discount rate and a 3% terminal growth rate [16][22]. - **Comparison with Peers**: Trading at a 2026 estimated P/E of 18x, compared to 17-18x for Tencent and Alibaba [6][11]. Risks and Considerations - **Market Environment**: A weak macroeconomic environment and risks associated with AI disruption may hinder the recovery of search ads [22][40]. - **AI Monetization**: The monetization of AI technologies is still in its early stages and has not yet shown significant financial impact [27][40]. Summary of Financial Estimates - **Total Revenue**: Expected to decline to Rmb128.959 billion in 2025, with a slight recovery projected in subsequent years [19][21]. - **Net Income**: Anticipated to be Rmb6.136 billion in 2025, with a gradual increase in the following years [19][21]. - **Operating Margins**: Expected to improve slightly but remain under pressure due to declining revenues [19][21]. This summary encapsulates the key points from the earnings preview for Baidu Inc., highlighting the company's financial expectations, operational strategies, and market outlook.

Summary of Alibaba Group Holding Conference Call Company Overview - **Company**: Alibaba Group Holding (BABA.N) - **Industry**: China Internet and Other Services - **Market Cap**: US$403.539 billion - **Current Stock Price**: US$169.90 (as of January 14, 2026) - **Price Target**: US$180.00, indicating a 6% upside potential Key Developments - **Launch of Qwen AI Assistant**: - Qwen AI can perform over 400 daily tasks through integration with the Alibaba ecosystem, providing one-stop solutions [1] - The Qwen App achieved over 100 million monthly active users (MAU) within two months of its launch [1] - Alibaba anticipates that 60-70% of digital-world tasks will be completed by AI in the next two years, with the remaining tasks enhanced by AI for efficiency [1] Market Position and Competition - **Ecosystem Integration**: - Qwen leverages Alibaba's ecosystem, including Taobao, Eleme, Fliggy, Amap, and Alipay, positioning it as an all-in-one AI superapp and life assistant [3] - Competitors like Tencent are enhancing their AI models, although their product launches may lag behind [3] Financial Expectations - **User Growth and Revenue**: - Expected increase in daily active users (DAU) for Qwen and improvements in its capabilities are projected to drive share price growth alongside cloud revenue, estimated to grow by over 35% in F3Q and 40% in F27 [4] - **Marketing Expenses**: - Increased marketing spending for consumer adoption may lead to higher overall losses, estimated at RMB 7 billion in F3Q [4] Risks and Opportunities - **Upside Risks**: - Better monetization in core e-commerce could drive earnings growth [18] - Faster enterprise digitalization may re-accelerate cloud revenue growth [18] - Stronger demand for AI could further boost cloud revenue [18] - **Downside Risks**: - Increased competition and higher-than-expected reinvestment costs [18] - Weaker consumer spending amid a slower post-COVID recovery [18] - Regulatory scrutiny of internet platforms could pose additional challenges [18] Financial Metrics - **Fiscal Year Ending**: March 2025 - **Revenue Estimates**: - FY 2025: RMB 996 billion - FY 2026: RMB 1,022 billion - FY 2027: RMB 1,111 billion - FY 2028: RMB 1,202 billion [8] - **Net Income Estimates**: - FY 2025: RMB 129 billion - FY 2026: RMB 111 billion - FY 2027: RMB 106 billion - FY 2028: RMB 141 billion [8] Conclusion - Alibaba Group Holding is positioned to capitalize on the growing AI market through its Qwen AI Assistant, which integrates seamlessly into its extensive ecosystem. While there are significant growth opportunities, the company must navigate competitive pressures and regulatory challenges to achieve its financial targets.

Summary of Baidu Inc. Conference Call Company Overview - **Company**: Baidu Inc (Ticker: BIDU.O) - **Industry**: China Internet and Other Services - **Market Capitalization**: US$49.729 billion - **Current Stock Price**: US$143.54 (as of January 9, 2026) - **Price Target**: US$130.00, indicating a downside of approximately 9% from the current price [5][5][5] Key Points Discussed Spin-off of Kunlunxin - The spin-off of Kunlunxin is a significant focus for investors, with expectations for a quick listing within six months [1][8][8] - Post-listing, Kunlunxin will remain a subsidiary of Baidu [8][8] - Revenue projections for Kunlunxin are expected to be comparable to top-tier A-share peers, with supply secured for 2026 [8][8] - Revenue will primarily come from selling GPUs to external clients and through Baidu cloud services [8][8] Shareholder Returns - There is potential for a renewal or increase in the share buyback program, which expired in December 2025, with dividends likely to be announced in the upcoming results [8][8] - The company is prioritizing the Kunlunxin spin-off over a dual primary listing in Hong Kong [8][8] Robotaxi Operations - Baidu's Robotaxi service is operational in 22 cities globally, with revenue models still under negotiation with partners like Uber and Lyft [8][8] - The Wuhan operation is expected to reach breakeven, with full autonomous operations anticipated within a year, averaging over 32 rides daily and more than 8 km per ride [8][8] Financial Metrics - **Earnings Per Share (EPS)**: Projected EPS for 2026 is 44.86 RMB, with a prior EPS of 17.56 RMB for 2025 [5][5] - **Revenue Estimates**: Expected revenue for 2026 is 142.225 billion RMB, up from 129.337 billion RMB in 2025 [5][5] - **P/E Ratios**: Projected P/E ratios are 52.0 for 2025 and 22.3 for 2026, indicating a potential recovery in core business performance [5][5] Risks and Opportunities - Risks include intensifying competition in search and online video, which may increase traffic acquisition costs (TAC) and necessitate more aggressive content investments [10][10] - Opportunities lie in the materialization of AI and robotaxi initiatives, which could drive better top-line growth and margin expansion [10][10] Additional Insights - The demand for Kunlunxin is high due to supply certainty, although approval for the H200 remains uncertain [8][8] - The company is navigating a competitive landscape with potential AI disruptions impacting search capabilities [10][10] This summary encapsulates the critical insights from the conference call, highlighting Baidu's strategic initiatives, financial outlook, and the competitive landscape within the industry.

Core Viewpoint - Leverage Shares by Themes is expanding its offerings in the single-stock leveraged ETF market with the launch of seven new products aimed at traders seeking amplified exposure to individual equities [1]. Group 1: New Product Launches - The new ETFs will begin trading on December 18 and are designed to deliver 200% of the daily performance of their underlying stocks, making them suitable for short-term trading rather than long-term investment [2]. - The new launches cover various sectors, including technology, health care, energy, and materials, indicating a strong demand for targeted leverage on popular stocks [3]. - The lineup includes: - Leverage Shares 2X Long NIO Daily ETF (NASDAQ:NIOG) focused on Nio Inc [3] - Leverage Shares 2X Long SNAP Daily ETF (NASDAQ:SNAG) linked to Snap Inc [3] - Leverage Shares 2X Long BIDU Daily ETF (NASDAQ:BIDG) for Baidu Inc [4] - Leverage Shares 2X Long CNC Daily ETF (NASDAQ:CNCG) tracking Centene Corp [4] - Leverage Shares 2X Long KLAC Daily ETF (NASDAQ:KLAG) associated with KLA Corp [4] - Leverage Shares 2X Long PBR Daily ETF (NASDAQ:PBRG) tied to Petrobras [5] - Leverage Shares 2X Long VALE Daily ETF (NASDAQ:VALG) focused on Vale SA [5]. Group 2: Market Positioning - All seven ETFs have an expense ratio of 0.75%, which is among the lowest in the single-stock leveraged ETF category, making them cost-efficient options for sophisticated traders and active retail investors [5]. - With these new additions, Leverage Shares by Themes now offers a total of 60 single-stock daily leveraged ETFs, reflecting the increasing demand for high-conviction, short-term trading instruments [6].

Summary of J.P. Morgan's Global Markets Strategy Conference Call Industry Overview - **Focus**: Asian equity markets, particularly China, Korea, and India - **Outlook for 2026**: Bullish on Asian equities with expectations of moderate to exceptional gains driven by policy support and liquidity [2][41][42] Key Points 1. Market Valuations and Positioning - Equity market valuations are currently high, with positioning in regional equities above the 80th percentile since July [2][41] - Despite high valuations, the expectation is for Asian equities to deliver gains due to supportive policies and liquidity [2][41] 2. China Market Recovery - China is in the early stages of recovery from a ~4-year downcycle, with acceptable valuations and light positioning [5][42][88] - Multiple support factors for China include: - AI adoption and power generation advantages - Innovations in robotics, biotech, semiconductors, and fintech - Consumption and property support measures - Rising shareholder returns and domestic liquidity reallocation [5][42][88][89] 3. AI Sector Insights - AI-heavy stocks (~35% of MXASJ) present a mixed risk-reward scenario, with concerns about monetization and potential commoditization [5][41] - The balance of risk and reward suggests limited incentive to increase exposure to AI stocks at this time [5][41] 4. Sector and Country Allocations - **Overweight (OW)**: Korea, Hong Kong/China, India, Consumer Staples, Materials, Financials [5][41][46] - **Neutral**: Taiwan, Technology, Industrials, Real Estate [5][41][46] - **Underweight (UW)**: ASEAN, Utilities, Energy, Healthcare [5][41][46] 5. Earnings Growth and Sector Contributions - Approximately 70% of the EPS consensus growth forecast for 2026 is driven by sectors in Korea, Taiwan, China, and India [14] - A synchronized acceleration of year-on-year growth across markets is anticipated for the first time since 2021 [14] 6. Policy Environment - Global easing policies are expected to support earnings and inflate equity valuations beyond normal levels [57][60] - The US has shifted from austerity to expansionary fiscal policies, which is expected to have a positive impact on Asian markets [58][68] 7. Long-term Themes - Key long-term themes expected to gain traction in 2026 include: - Governance improvements driving re-rating - Localization of Asian equity markets - Stablecoins as a new financial frontier [5][46] 8. Market Index Targets - End-2026 index targets for MXASJ are set at 1025 (base case), 1200 (bull case), and 800 (bear case) [7][54] 9. Risk Considerations - The potential for large gains in 2026 is viewed as substantially higher than the risk of large losses, particularly in the context of China's recovery [5][42][88] Additional Insights - The report emphasizes the importance of monitoring governance reforms in Korea and the ongoing developments in China as critical factors influencing market performance [5][41][42] - The strategic case for allocation to Asia is strengthened by recent improvements in long-term headwinds such as margins and valuations [14][41] This summary encapsulates the key insights and recommendations from J.P. Morgan's conference call, focusing on the outlook for Asian equity markets and the specific dynamics affecting China, Korea, and India.

Summary of Baidu Inc. Conference Call Company Overview - **Company**: Baidu Inc (Ticker: BIDU.O) - **Industry**: China Internet and Other Services - **Market Cap**: US$40,011 million - **Current Stock Price**: US$115.49 (as of November 19, 2025) - **Price Target**: US$130.00, representing a 13% upside potential Key Points Discussed AI Infrastructure and Development - Concerns regarding supply and demand for proprietary AI infrastructure were highlighted, with a focus on AI monetization across various sectors including search, applications, cloud, and robotaxi [1][5][8] - Baidu's Kunlun chip is noted as a leading domestic AI chip, with strong demand from various sectors such as tech, finance, and manufacturing [8] Revenue Growth and Financial Performance - AI marketing revenue has transformed from traditional bidding ads to AI-driven search, resulting in a significant revenue increase of +262% in Q3, contributing to 18% of the total ad revenue [8] - Overall revenue growth is expected to accelerate, with projections of net revenue reaching Rmb156,300 million by FY2027 [6][8] - The company has invested over Rmb100 billion since the launch of its AI model, Ernie, with expectations of improved monetization in the future [8] Robotaxi Operations - Weekly average rides for Baidu's robotaxi service have reached over 250,000, comparable to global peers [8] - Revenue per mile in China is reported at Rmb1-2, with breakeven achieved in certain cities, while overseas revenue potential is estimated at US$1-2 per mile [8] Capital Management and Shareholder Returns - Baidu holds total cash and investments of US$40 billion as of Q3, with plans to enhance shareholder returns through potential special dividends, buyback programs, and unlocking non-core business value [8] - The company is also considering dual listing and Southbound inclusion possibilities [8] Market Position and Competitive Landscape - The company maintains an equal-weight rating from Morgan Stanley, with an attractive industry view [6] - Risks include intensifying competition in search and online video, which may increase traffic acquisition costs and necessitate more aggressive content investments [10] Future Outlook - Baidu plans to enhance business segment disclosures to provide better insights into its operations and growth strategies [8] - The company is optimistic about the materialization of AI and robotaxi initiatives, which are expected to drive future growth [10] Additional Insights - The fiscal year ending for Baidu is December 2024, with earnings per share (EPS) estimates showing a significant decline in FY2025 before recovery in subsequent years [6] - The company is navigating domestic capacity constraints with a three-year product pipeline for its Kunlun chip [8] This summary encapsulates the critical discussions and insights from the conference call, providing a comprehensive overview of Baidu Inc.'s current position and future prospects in the rapidly evolving AI and internet services landscape.

Baidu Inc. 3Q25 Earnings Call Summary Company Overview - **Company**: Baidu Inc. - **Industry**: China Internet and Other Services - **Market Cap**: US$42.16 billion - **Current Stock Price**: US$121.69 - **Price Target**: US$140.00 Key Financial Metrics - **Core Revenue**: Rmb24.6 billion, down 7.3% YoY [1] - **Operating Profit**: Rmb2.2 billion, down 66.7% YoY [1] - **Online Marketing Revenue**: Expected to decline by 20% YoY [2] - **AI Cloud Revenue**: Expected to grow by 20% YoY [3] - **Total Net Revenue**: Rmb31.04 billion, down 7.5% YoY [13] Core Insights - **Online Marketing Revenue Decline**: The decline in online marketing revenue is attributed to the ongoing AI transformation affecting search ads monetization. By July 2025, 64% of mobile search result pages contained AI-generated content, up from 50% in June [2] - **AI Cloud Growth**: AI cloud revenue growth has slowed to 20% from 27% in the previous quarter, primarily due to slower growth in personal cloud services [3] - **Management Focus**: The management is focused on unlocking value through AI services, balance sheet optimization, and potential spin-offs of undervalued assets [1][3] Financial Projections - **Revenue Estimates**: Core revenue estimates for 2025-2026 have been lowered by 2% [3] - **Sum-of-the-Parts Valuation**: The SOTP value is estimated at US$220, with contributions from various segments including marketing (US$40), cloud (US$80), robotaxi (US$30), and net cash + investments (US$70) [3] - **P/E Ratio**: Baidu is trading at a 2026 estimated P/E of 15x, compared to 18-19x for competitors Tencent and Alibaba [3] Upcoming Developments - **Disclosure of AI Revenue**: Expected in November 2025, detailing revenues from AI-native marketing services and AI SaaS [9] - **Shareholder Returns**: Enhanced shareholder returns, including potential buybacks and dividends, are anticipated during the 4Q25 earnings announcement [9] - **Spin-off Plans**: Future plans include the spin-off of undervalued assets such as chips and robotaxi services [9] Risks and Considerations - **Market Environment**: A weak macro environment and risks associated with AI disruption are significant factors affecting the recovery of search ads [24] - **AI Monetization**: The monetization of AI services is still in early stages and has not yet shown a meaningful financial impact [27] - **Competition**: Intensifying competition in search and online video may drive up traffic acquisition costs and necessitate more aggressive content investments [42] Conclusion Baidu Inc. is navigating a challenging environment with a focus on AI transformation and unlocking shareholder value. While there are growth opportunities in AI cloud services, the decline in online marketing revenue poses risks. The management's strategic initiatives and upcoming disclosures will be critical in shaping investor sentiment and financial performance moving forward.

Summary of Baidu Inc. Conference Call Company Overview - **Company**: Baidu Inc (BIDU.O) - **Industry**: China Internet and Other Services - **Market Cap**: US$48.582 billion - **Current Stock Price**: US$140.23 (as of October 2, 2025) - **Price Target**: Raised from US$100.00 to US$140.00, with a sum-of-the-parts (SOTP) valuation of US$220.00 [1][5][24] Key Points Industry Dynamics - **Advertising Sector**: - Core ads are expected to decline by 15% in FY25, with limited visibility for recovery [2][10] - AI search results are increasing, but monetization remains challenging compared to traditional search [2] - Digital revenue from human and agents is projected to contribute 16% of ad revenue in 2Q [2] AI Cloud Growth - **Revenue Contribution**: Personal cloud is estimated to account for 30% of cloud revenue, benefiting from AI transformation [3] - **Enterprise Cloud**: Subscription revenue is expected to drive over 50% of enterprise cloud revenue [3] - **Growth Forecast**: AI cloud revenue is projected to grow at 32% in FY25 [3] Autonomous Driving Initiatives - **Robotaxi Operations**: Apollo Go operates a fleet of over 1,000 vehicles, providing 2.2 million fully driverless rides across 16 cities [4] - **Profitability**: Wuhan has achieved breakeven in unit economics, but financial contributions from robotaxi services are expected to be limited in the near term [4] Financial Performance and Projections - **Revenue Estimates**: - FY25 total revenue is expected to be flat, with core operating profit projected to decline by 50% due to negative operating leverage [10] - Core revenue and earnings estimates for FY26-27 have been raised by 3-5% due to higher cloud revenue [5] - **Valuation Metrics**: - The stock is currently trading at 17x 2026E, which is close to Tencent and Alibaba valuations but with a weaker growth outlook [11] - Core ads are valued at US$40/share, cloud at US$80/share, and autonomous driving at US$30/share in the SOTP valuation [5][13] Risks and Challenges - **Market Sentiment**: The stock has rallied over 60% in the last two months, driven by bullish sentiment in the AI cloud space, but the core business fundamentals remain under pressure [10][11] - **Competition and Disruption**: There are risks related to competition in search and online video, as well as potential disruptions from AI adoption [48] Investment Considerations - **Long-term Potential**: While the current valuation appears stretched, there is potential for ramp-up in the cloud business and value unlock in AI chip initiatives [11] - **Price Target Implications**: The new price target implies a valuation of 17x 2026E non-GAAP P/E, indicating a cautious outlook despite recent stock performance [33] Additional Insights - **Financial Summary**: - FY25 estimated net income is projected at Rmb 20,046 million, with a decline in operating profit expected [27] - The company is focusing on enhancing shareholder returns and has lowered its WACC and cash discount rates [5] This summary encapsulates the key insights from the conference call regarding Baidu Inc's current performance, future outlook, and the challenges it faces in the rapidly evolving tech landscape.

Core Insights - The article provides a comprehensive comparison of Meta Platforms against its key competitors in the Interactive Media & Services industry, focusing on financial indicators, market position, and growth potential [1] Company Overview - Meta Platforms is the largest social media company globally, with nearly 4 billion monthly active users [2] - The core business, "Family of Apps," includes Facebook, Instagram, Messenger, and WhatsApp, which are used for various purposes, including social interaction and digital business [2] - Meta generates revenue by selling ads based on customer data collected from its applications, while its Reality Labs business remains a minor part of overall sales [2] Financial Performance - Meta's Price to Earnings (P/E) ratio is 27.75, which is 0.42x lower than the industry average, indicating potential for growth at a reasonable price [5] - The Price to Book (P/B) ratio is 9.85, which is 2.09x the industry average, suggesting the company may be overvalued in terms of book value [5] - The Price to Sales (P/S) ratio is 11.1, which is 0.14x the industry average, indicating the stock could be undervalued based on sales performance [5] - Meta's Return on Equity (ROE) is 9.65%, which is 7.09% above the industry average, reflecting efficient use of equity to generate profits [5] - The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stands at $25.12 billion, which is 7.12x above the industry average, highlighting strong profitability [5] - The gross profit is $39.02 billion, indicating 6.94x above the industry average, showcasing higher earnings from core operations [5] - Revenue growth is at 21.61%, exceeding the industry average of 11.32%, indicating strong sales performance [5] Debt Analysis - Meta's debt-to-equity (D/E) ratio is 0.25, indicating a lower reliance on debt financing compared to its peers, which is viewed positively by investors [10]

Summary of Baidu and IQIYI Conference Call Company and Industry Overview - **Companies Involved**: Baidu Inc. (BIDU.O) and iQIYI Inc. (IQ.O) - **Industry**: Internet and Other Services in Asia Pacific Key Points and Arguments Baidu's Advertising Performance - Core advertising revenue is expected to decline by **23% YoY** in Q3, worsening from a **15% decline in Q2** [1][2] - AI-related search results have increased from **50% in June to 64% in July**, but monetization remains limited [2] - Estimated **16% of advertising revenue** in Q2 came from AI, with **13% from AI agents** and **3% from digital humans** [2] - Cautious outlook for advertising recovery, with expectations of a **15% decline in Q4** [2] Baidu's Cloud Business - Cloud revenue reached **Rmb 6.5 billion**, growing **27% YoY** in Q2 [3] - Enterprise cloud growth is outpacing personal cloud, with subscription revenue growing over **50% YoY** [3] - Expected cloud growth of **30% YoY** in Q3, with margins maintained in the teens [3] Robotaxi Developments - Apollo Go operates in **16 cities globally** and has formed partnerships with Uber and Lyft [4] - Focus on expanding global operations with over **1,000 fleets** and **2.2 million rides in Q2** [4] - Limited financial contribution expected in the near term [4] Margin Pressures - Margins are under pressure due to declining ad revenue and increased investments in AI and robotaxis [5] - Operating profit for Q2 is expected to be **Rmb 2.2 billion**, down **66% YoY**, with an operating margin of **9.0%**, a decrease of **16.1 percentage points** [5] iQIYI's Financial Outlook - Price target raised from **US$1.7 to US$2.1**, maintaining an equal weight rating [6] - Despite recent financial struggles, potential for revenue growth exists due to regulatory relief [6] - Risks include competition in the long video and short drama segments [6] Baidu's Price Target and Earnings Estimates - Price target maintained at **US$100**, with a cautious outlook on core ads and margin pressures [7] - Core earnings estimates for 2025 lowered by **12%** [7] - Current price target implies an **11x P/E** for 2026, compared to **19-20x** for Tencent and NTES [7] Financial Performance Highlights - Baidu's total revenue fell **4% YoY**, with core revenue declining **2% YoY** [17] - Core marketing revenue dropped **15%**, while non-marketing revenue rose **34% YoY** [17] - iQIYI's revenue fell **11%** to **Rmb 6.6 billion**, missing estimates [17] Valuation Insights - Baidu's valuation derived from a sum-of-the-parts approach, with a **12% discount rate** and **3% terminal growth rate** [25] - iQIYI's valuation reflects weaker earnings growth visibility compared to peers [27] Additional Important Information - Baidu returned **US$232 million** in Q2 under its **US$5 billion share repurchase program** [17] - iQIYI's operating profit declined **88% YoY**, missing consensus estimates [17] - Baidu's gross margin decreased to **43.9%**, down **7.8 percentage points** YoY [17] This summary encapsulates the critical insights from the conference call, highlighting the challenges and opportunities faced by Baidu and iQIYI in the current market landscape.