Core Viewpoint - Baidu, once a high-growth tech stock, is now facing significant long-term challenges, with its revenue growth slowing dramatically and competition intensifying in the online search market [1][4]. Group 1: Revenue Growth and Performance - Baidu's annual revenue grew at a CAGR of 45% from 319 million yuan in 2005 to 124.5 billion yuan ($19.5 billion) in 2021 [1]. - From 2021 to 2024, Baidu's revenue growth slowed to a CAGR of only 2% due to macroeconomic headwinds and competition from apps like Douyin and Weixin [4]. - In 2024, Baidu's total revenue growth was reported at (1%) with a projected growth of 3% for Q1 2025 [8]. Group 2: Revenue Segmentation - In 2021, 78% of Baidu's revenue came from online marketing services, which has since declined to 55% in 2024, while non-online marketing services accounted for 24% [6][7]. - The online marketing services revenue growth has fluctuated, showing a decline of (6%) in 2022 and (3%) in 2024, while non-online marketing services grew by 12% in 2024 [8]. Group 3: Strategic Initiatives - Baidu is focusing on expanding its AI Cloud platform to reduce reliance on its declining online marketing services segment, with significant growth in non-online marketing services driven by AI [6][8]. - The company is considering a full spinoff or divestment of its streaming video platform iQiyi to free up cash for AI Cloud expansion [9]. Group 4: Future Outlook - Analysts expect Baidu's revenue to remain nearly flat in 2025, with a projected 17% drop in EPS, although the AI Cloud business may grow rapidly enough to offset declines in other segments [10]. - For 2026, revenue and EPS are expected to grow by 5% and 3%, respectively, indicating a stabilization but still reflecting slow growth potential [12].