NEW YORK (TheStreet) -- Baidu (BIDU) - Get Report was downgraded to "sector weight" from "overweight" at KeyBanc on Wednesday.

Yesterday, Baidu announced its 2015 second quarter financial results with revenue of $2.67 billion, representing a 38.3% increase from last year. Operating profit was $559.6 million, down 2.5% from the same period in 2014.

As the company is stepping up its spending on online-to-offline (O2O) significantly for the next half year of 2015, providing search traffic to O2O ventures may negatively impact revenue growth, KeyBanc noted.

"We think O2O cannibalizes search revenue, particularly for higher-frequency usages, so we believe it is more relevant to look at Baidu's financial performance including O2O spending," KeyBanc analysts said.

Baidu, based in Beijing, is a Chinese-language Internet search provider (ISP) that enables users to find relevant information online, including Web pages, news, images, documents and multimedia files, through links provided on its Websites

Shares of Baidu are rising 0.21% to $168.38 in afternoon trading.

Separately, TheStreet Ratings team rates BAIDU INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BAIDU INC (BIDU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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