1、Morningstar Equity Company Report|Report as of 1 Sep 2025 08:55,UTC|Reporting Currency:CNY|Trading Currency:USD|Exchange:NASDAQ-ALL MARKETSPage 1 of 25?Baidu Inc ADR BIDU QQQQ 29 Aug 2025 21:28,UTCLast Price95.30 USD29 Aug 2025Fair Value Estimate146.00 USD22 May 2025 10:36,UTCPrice/FVE0.65Market Cap

2、32.76 USD Bil29 Aug 2025Economic MoatTMWideEquity Style Box1 Large ValueUncertaintyHighCapital AllocationStandardESG Risk Rating Assessment1;4 Jun 2025 05:00,UTCKai Wang,CFASenior Equity AnalystMorningstar+852 2973 ContentsBusiness DescriptionBusiness Strategy&Outlook(1 Sep 2025)Bulls Say/Bears Say(

3、1 Sep 2025)Fair Value and Profit Drivers(1 Sep 2025)Economic Moat(1 Sep 2025)Risk and Uncertainty(1 Sep 2025)Financial Strength(1 Sep 2025)Capital Allocation(1 Sep 2025)FinancialsESG RiskRecent Analyst NotesResearch Methodology for Valuing CompaniesImportant DisclosureThe conduct of Morningstars ana

4、lysts is governed by Code of Ethics/Code of Conduct Policy,Personal Security Trading Policy(or an equivalent of),and Investment Research Policy.For information regarding conflicts of interest,please visit:http:/ primary analyst covering this company does not own its stock.Reporting Currency:CNY|Trad

5、ing Currency:USDCurrency amounts expressed with$are in U.S.dollars(USD)unless otherwise denoted.1The ESG Risk Rating Assessment is a representation of Sustainalytics ESG Risk Rating.Advertising Business Still Challenged by Macro Conditions but AI Becoming Material to ValuationBusiness Strategy&Outlo

6、ok Kai Wang,CFA,Senior Equity Analyst,1 Sep 2025Baidus online advertising business accounted for 79%of Core revenue in 2024 and will be the main source of revenue in the medium term,given its dominant market share for search engines,but we believe that unless it can develop another industry-leading