Reportedly, Chinese search titan Baidu is experiencing stiff competition from new competitors and has seen more than $60 Billion of its worth sniped from its peak last year. It is a part of China’s internet trio “BAT” (Baidu, Alibaba, and Tencent). But it is dealing with an increasingly hard-hitting advertising market and has been plummeting behind the other two competitors. Mostly stated as “China’s Google,” Baidu has reported its shares sliding by almost 40% in this year. On the contrary, gaming giant Tencent is up just by 6%, whereas e-commerce titan Alibaba is over 27% higher. During its peak in mid-May 2018, the internet company was valued at around $99 Billion.
The stocks of the search giant fell to $96.7 a share with its market capitalization dipping to $33.8 Billion. Relatively, Alibaba and Tencent are both worth more than $400 Billion. Before its second-quarter proceeds report, analysts are anticipating further troubles for Baidu. For the June quarter, Wall Street is forecasting revenue of $3.66 Billion (25.76 billion yuan), as per to projections from Refinitiv. The earnings per share as 2.91 Yuan as per to Refinitiv estimates. If obtained, it would be over 83% yearly declines. For a long time, Baidu has dominated China’s search engine market due to the absence of main competition.
On a related note, in recent time, Baidu’s CEO warned about “troubles” following search titan fights off rivals. The Chinese search leader’s shares jumped above 10% in extended trading subsequent it posted sales climbing by 1.4% to $3.8 Billion (26.3 billion yuan) in the June quarter, versus estimations for a decline. Baidu foresees present-quarter proceeds of 26.9–28.5 billion yuan, which is somewhat flat and roughly on track with estimates. The better-than-anticipated results will alleviate investors’ fears for now that the 19-Year-old firm is losing steam quickly as China’s internet shifts from desktop to mobile.