Baidu's stocks have dropped by 31 percent year-to-date due to weak demand and fierce competition in China's online advertising market.
On the other side, Alibaba's portfolio has increased by 31 percent, backed by robust e-commerce consumer spending.
Baidu stock plunged earlier this year after the company had posted its first net loss since 2005 when it became public.
Revenue for its core online advertising business grew 3 percent from a year earlier in the first quarter of 2019 and fell by almost 10 percent in the second quarter.
Even though sales and profits rise above the low expectations of Wall Street, the stock remains under pressure.
Analysts said a poor Chinese economy is to blame, as sluggish growth prospects, businesses scale-back, are taking a huge toll on Baidu's online advertising revenue.
The fight for advertisers' budgets is also becoming fiercer, as newer platforms like social media, short-video apps, and live-streaming applications both compete for a greater share of the pie in the second-largest economy in the world.
In an effort to boost visitor development and increase conversion rates for advertisers, Baidu has also turned its industry as content-centered, providing news feeds, mini services and short videos on its page.
Baidu also has a 48 percent investment in the iQiyi (IQ) website and a 14 percent share in the Ctrip.com International (CTRP) online travel agency valued at $7.4 billion and $2.3 billion, respectively.
Baidu has put a solid amount of money in cutting-edge hardware like artificial intelligence, cloud computing, and autonomous driving, and looks to be well-positioned for the next growth phase.
Profits coming from Baidu's smart technology speaker systems - backed by an AI assistant called DuerOS - have boomed significantly during the last four quarters to become China's top player, and Alexa's second, worldwide.
According to research firm Canalys, Baidu's speaker has overtaken Google Assistant's Alphabet to grab 17.4 percent of the global market, with 4.5 million deliveries in the second quarter this year. Baidu is also China's leader in autonomous vehicles with its Apollo 5.0 Smart System playing an integral part in driverless cars.
For now, the company's new initiatives make up only a quarter of Baidu's profits and shell out more cash than they take in.
Wall Street predicts profit from Baidu to drop - for the first time in nearly three years- by 1.8 million from a year ago to 27.7 billion Chinese yuan ($3.9 billion) for the three months ending in September.
Earnings are expected to reach 8.40 yuan ($1.19) per share, less than half last year's number and less than the second quarter.
