Morgan Stanley has released a research report predicting BIDU-SW (09888.HK) +0.400 (+0.467%) Short selling $305.37M; Ratio 40.810% (BIDU.US) to see a 3% decline in its 2Q25 core revenue.Impacted by operational deleveraging, BIDU-SW's 2Q non-GAAP core operating profit is anticipated to fall by 43% YoY, with the operating profit margin dropping by 10.7 ppts to 15.5%.Related NewsCICC: Lower-than-expected BIDU-SW (09888.HK) Core Ad Rev. Estimated w/ TP $96, Rating Kept at OutperformMorgan Stanley lowered its forecast for BIDU-SW's core advertising growth in 2Q to a contraction of 15%, with further decline in advertising growth expected in 3Q. The broker also believed that the company's cloud business growth should remain at 25% in 2Q.Remaining cautious about BIDU-SW, Morgan Stanley noted that visibility in the recovery of its core business was limited, while profit margins receded because of weak revenue.Due to foreign exchange adjustments, the broker raised its target price for BIDU-SW's US shares from USD95 to USD100, with the Equalweight remaining in place.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-18 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)Related NewsBofAS Cuts Baidu (BIDU.US) 2Q Core Rev. Forecast, Keeps Rating at Buy