0850 GMT - Baidu's search market share could be threatened after Tencent's Weixin began tests to integrate DeepSeek's model, Daiwa analyst John Choi says in a research note. In January, 22% of Baidu's search queries were AI-powered but not monetized, the analyst notes. Although Baidu has followed suit to integrate DeepSeek into its search engine, Choi thinks the high-quality information from companies' and institutions' official accounts on Tencent's Weixin platform could attract more users in the long term, he says. Meanwhile, Baidu's move to make its next-generation AI model Ernie 4.5 open source amid fierce competition could weigh on its operating margin, Choi says. Daiwa lowers Baidu's rating to outperform from buy and cuts its target to HK$100.00 from HK$108.00. Shares last ended 2.05% lower at HK$88.35. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 19, 2025 03:50 ET (08:50 GMT)
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