Baidu, once a high-growth giant, saw revenue increase at a CAGR of 45% from 2005 to 2021. However, from 2021 to 2024, its revenue grew by only 2%. This stagnation results from intense competition and changing user habits, with a notable shift towards mobile apps. In 2021, 78% of revenue came from online marketing services, but by 2024, that percentage dropped to 55%. Baidu has shifted focus to its AI Cloud platform and non-marketing services to cope with these changes and boost growth.
Baidu, facing fierce competition from ByteDance's Douyin and Tencent's Weixin, has seen its revenue growth decline significantly, dropping to just 2% CAGR from 2021 to 2024.
Despite a remarkable past, Baidu's current stock trades at approximately $88, reflecting a struggle to impress investors, mainly due to its reliance on online marketing services.
Collection
[
|
...
]