Baidu reported a drop in revenue for the third consecutive quarter. Operating profit was down over 40% year-over-year. Baidu's core search business (cash cow) is struggling due to macro weakness and competition. While they are pivoting to AI, it is "hard to call... a turning point." Lea contrasts this with Tencent (TCEHY), which is using AI to enhance existing strong products rather than trying to save a declining core business. AVOID Baidu until sustained earnings improvement is visible; prefer Tencent. Unexpected stimulus from Beijing boosting ad spend.