BIDU’s aggressive development in news feed and AI not only generated an additional source of revenue, but at the same time increased the total usage of Baidu search and mobile APP. In addition, the views and paying users increased for iQiyi, while BIDU decreased its investment in Nuomi. ……

BIDU is at a turning point in its business. The company has established its new strategy – all in AI, which we believe has played into BIDU’s strength. BIDU now has all it needs to become a leader in AI applications in China. For its upcoming 3Q17 earnings report on Thursday (October 26th after the market closes followed by an 8pm EST conference call), based on our data and calculations, we believe BIDU is likely to deliver 3Q17 top line at RMB23.683B, at least in line with or slightly higher th……

Based on our data andcalculations, we believe BIDU is likely to deliver 3Q17 top line at aroundRMB23.683B, at least in-line with or slightly higher than consensus atRMB23.538B. ……

BIDU will report 2Q16 results on Thursday, July 28 after the close of the market followed by an 8pm EST conference call. We are expecting the company to report 2Q revenue in line with its preannounced guidance of 9% - 10% Y/Y growth. 2Q16 is a bad quarter for BIDU, as 1) the death of a young cancer patient triggered the government to review BIDU’s medical and healthcare sector; and 2) the search business is now classified as advertising, in which two-thirds of BIDU’s revenue will incur another 3……

BIDU will report 4Q15 results on Thursday, February 25 after the close of the market followed by an 8pm EST conference call. We do not have anything special to say about BIDU’s 4Q15, and we are expecting 4Q15 results to be at least in line but highly likely to be better than consensus expectation. However, we do believe the current consensus for 2016 revenue growth at 24.5% Y/Y is too low as BIDU’s subsidiaries including Nuomi and food delivery are likely to drive higher growth. This high growth……

We believe BIDU almost has no alternatives but to invest in food delivery as well as group-buy business in order to overcome constrains of its past success in PC search, which is that BIDU does not require users to register. In the mobile era, its peers Tencent (700-HK, HK$149.10 – Intraday, Not Rated) captures millions of mobile users with its communications tools, mobile QQ and WeChat, and Alibaba (BABA, $79.71, Buy) with its Alipay while BIDU had nothing to accomplish such task. In the PC era……

BIDU will report 2Q15 results on Monday, July 27th after the close of the market followed by an 8pm EST conference call. We are expecting the company to report at least in line 2Q15 results, driven by its core search business, particularly strong mobile search. We believe its strength in mobile search can continue. For other businesses such as Nuomi, we believe its newly committed investment is likely to result in the rapid growth in GMVs as well as registered mobile users. As such, we maintain ……

Beyond BIDU’s mixed 1Q15 result and soft 2Q15 guidance, we believe its search business has significant potential to resume high growth toward 2H2015 driven by its new mobile initiatives, mainly its distance proximity bidding, which allows businesses to conduct search marketing in a locally defined territory. BIDU plans to introduce it to the market in 2Q15. We believe it has the potential to capture customers’ needs for location based services and to become a new engine for the company’s future ……

BIDU will report 1Q15 results on Wednesday, April 29th after the close of the market followed by an 8pm EST conference call. We are expecting BIDU to report 1Q revenue in line with the Street on strong mobile performance, and 2Q15 guidance to be at least in line with consensus. However, 2015 will be another investment year focused on rolling out new initiatives such as O2O, LBS, group-buy and food delivery, and continuing to promote its video business. While we believe these initiatives may help……

January 1 – March 31, 2015 Operating Data Highlights:Data in this report is extracted from publicly available sources and processed with our proprietary methodology.•Significant increase in mobile downloads – By the end of 1Q15, mobile app downloads for Youku Tudou’s platform was about 2,860M, which increased by 414.9M from 2,445M as of 12/28/2014 (Figure 1). YOKU’s mobile downloads are behind iQiyi at about 3,372M by the end of 1Q15 and 2,665M as of 12/28/2014. ……

January 1 – March 31, 2015 Operating Data Highlights:Data in this report is extracted from publicly available sources and processed with our proprietary methodology.•The market share for BIDU's search engine was flat in 1Q15 – The daily market share of BIDU remained flat Q/Q at 55.3% in 1Q15, while the search market share of Qihoo (QIHU, $54.00, Buy) increased slightly to 33.6% in 1Q15 from 32.4% in 4Q14. Sogou’s market share declined Q/Q to 9.3% from 10.6% in 4Q14 (Figure 1). The daily page……

January 2015 Data Highlights:•Kugou Technology is the leading player with about 27% market share. Kugou Technology hits the #1 position with its major product, Kugou Music (酷狗音乐). Kuwoo Technology (北京酷我科技有限公司) followed Kugou with a 13% market share, and is well known for its app, Kuwoo Music (酷我音乐). Tencent and Baidu took the positions of #4 and #7, respectively, according to our proprietary data. Baidu’s leading position was mainly attributable to its acquisition of TTPlayer (千千静听). The mobile ……

•Increase in number of daily actively viewed content – During the period of 01/01/2015-01/25/2015, the total number of daily actively viewed content was 54.5K or 1.7% Q/Q from 53.6K in 4Q14 (Figure 1). Of that, the number of actively viewed content titles on Youku Tudou’s platform was 20.3K, followed by LeTV at 11.0K, iQiyi/PPS at 8.9K, Tencent at 7.8K and Sohu at 6.6K during the period of 01/01/2015-01/25/2015 (Figure 1).    ……

January 2015 Data Highlights:•Sina dominates the microblog app market with 88.7% market share measured by cumulative downloads - We believe Sina Weibo is the most important mass media channel for news distribution and acquisition. According to our proprietary data, Sina Weibo leads the market with 88.7% market share, followed by Tencent with 10.9%, as measured by the total cumulative number of app downloads while the downloads for other microblog providers are not meaningful at all (Figure 1 &am……

BIDU will report 4Q14 results on Wednesday, February 11th after the close of the market with an 8pm EST conference call. We believe that BIDU may report 4Q14 revenue better than consensus, driven by continued strong advertising growth from mobile. However, we don’t expect any upsides in its margins in 4Q14 due to the investment in its LBS business, which started in 3Q14. Even though BIDU made a significant turnaround in its mobile business in the last year and a half, it did not seem to be enoug……

•Consolidation toward major App Stores - According to our proprietary data, total number of unique mobile apps in 21 major Android app stores in China was about 1.275M with a net addition of 79.8M from 1.195M in 3Q14 (Figure 1). Among that, the number of mobile game apps was about 364K in 4Q14E, up 29K from 3Q14, while non-game apps reached 911K, up 51K from 3Q14. The average cumulative downloads of mobile apps were about 165.2B in 4Q14E, or 33.9B new additional downloads from 131.3B in 3Q14 (Fi……

July 1, 2014 - September 15, 2014 Data Highlights:•Consolidation in major app stores - According to our proprietary data, total average cumulative number of unique mobile apps in 21 major Android app stores in China was about 1.161M or a net addition of 0.07M from 1.088M in 2Q14 (Figure 1); the average cumulative downloads in mobile apps were about 132.2B in 3Q14E, or 21.4B new additional downloads from 110.8B in 2Q14 (Figure 2). Among these total downloads, the top four vendors are taking 59.8%……

July 1 – August 25, 2014 Operating Data Highlights:Data in this report is extracted from publicly available sources and processed with our proprietary methodology.Youku Tudou maintained the lead in terms of new content acquisition – During the period of 07/01/2014-08/25/2014, Youku Tudou released 29 new TV dramas vs. Sohu at 23, LeTV at 15, iQiyi at 14 and Tencent at 10, which generated 4.3B views on Youku's platform vs. Tencent at 3.7B, LeTV at 1.4B, Sohu at 1.1B and iQiyi at 0.5B (Figure 1……