From Nasdaq: 2025-06-05 12:57:00

China’s Internet giants, Alibaba and Baidu, are preparing for growth in the AI sector. Alibaba’s diversified revenue streams and AI leadership show resilience and growth potential. Meanwhile, Baidu faces challenges with its search business and AI cloud scale. Alibaba’s superior financial metrics and stability make it a more compelling investment choice.

Alibaba’s first-quarter 2025 results demonstrate solid growth with total revenues reaching RMB236.4 billion. The company’s ecosystem approach and AI leadership through Qwen are gaining traction. With strong financial positioning and diversified revenue streams, Alibaba appears well-positioned for sustained growth and shareholder returns.

Baidu’s revenue growth in the first quarter of 2025 lags behind expectations, highlighting challenges in its core search business. Heavy reliance on search advertising and the transition to AI-driven content pose risks to profitability. Baidu’s smaller AI cloud scale and uncertainties in autonomous driving ventures create execution risks for investors.

Alibaba’s P/E ratio of 10.98x is more attractive compared to Baidu’s 8.51x, reflecting investor confidence. Alibaba’s shares have climbed 41.2% year to date, outperforming Baidu. The company’s consistent profitability and diversified revenue streams provide greater stability and growth potential for investors.

Alibaba emerges as the superior investment choice due to its fundamental strength, diversification, and financial stability. Baidu faces structural challenges in search and AI cloud scale, creating uncertainties for investors. Consider accumulating Alibaba shares while exercising caution with Baidu until clearer monetization paths emerge.



Read more at Nasdaq: Alibaba vs. Baidu: Which Chinese Internet Stock is a Better Bet?