Baidu Q3 Earnings: AI Revenue Remains Strong; 22% Below Its Book Value Is A Contrarian Buy (Upgrade)

Core Viewpoint - Baidu has reversed all gains from a previous 40% rally due to disappointing Q3 FY2024 earnings report, which has negatively impacted its stock performance [1]. Group 1: Company Performance - Baidu's stock experienced a significant decline following the release of its Q3 FY2024 earnings report, which did not meet market expectations [1]. - The initial rally of 40% was primarily driven by fiscal stimulus plans announced in late September, indicating a strong market reaction to government policies [1]. Group 2: Market Reaction - The market's response to Baidu's earnings report highlights the volatility and sensitivity of tech stocks to financial performance and external economic factors [1].