Baidu Lost $60 Billion In Value From Last Year, Proceeds Expected To Fall
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Baidu Lost $60 Billion In Value From Last Year, Proceeds Expected To Fall

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.

William Bolt
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EDITOR-IN-CHIEF At Electronics Industry Reports

William Bolt is one of the most charming personality in Electronics Industry Reports portal’s staff. He has been holding 10 years of experience in business and market analysis. At present, he is recruited as Editor-in-Chief by the portal. His ability to illustrate complicated business, economics, politics, market and finance-related concepts in a simple and understandable way is superb. He worked as a Finance Manager for 6 years in a multinational production firm. He has acquired his Master’s degree in Finance from a UK-based institute. He occasionally conducts lectures for the staff columnists to improve their writing skills.

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