Baidu Q1 Earnings Preview: Kunlunxin IPO Makes BIDU's Valuation Math Irrational

Baidu is scheduled to report Q1 earnings on May 18. More than the headline numbers, my primary focus will be on the progress of its AI cloud business. The strengthening AI cloud subscription revenue momentum and AI-native marketing are key growth drivers amid core search headwinds. The planned Kunlunxin IPO, targeting a RMB 100 billion valuation, will unlock value, shift the CapEx burden, and enhance Baidu's financial profile.