AI Monetization StrategyBaidu's adoption of a complex CPS method for AI monetization introduces significant risks, as it requires fundamental changes from both merchants and consumers and lacks proven success examples.
Financial PerformanceBaidu Core's online ads revenue experienced a year-over-year decline, driven by a shift towards non-monetized AI-generated search results, which is expected to continue impacting revenue negatively.
Market OutlookThe stock is expected to trade sideways due to increased disruption and decreased visibility of future success, as the company navigates challenges in its transformation to AI-driven search.