Struggling Chinese Economy Leads Baidu (BIDU) to Report Loss, Stock Slumps

Chinese major search engine Baidu for the first time reported a loss since 2005 as company fights with slowing economy of country and struggling local market.
China’s biggest online search engine published a net loss of $47.5 million or 327 million yuan for the quarter finished on March 2019. However analysts were expecting net loss of 187.5 million. Baidu also estimated sales drop. The Beijing-based company’s 14-year veteran Hailong Xiang has resinged and said that search giant depositary receipts dropped over 7% in extended trading.
The search company is struggling on many boarders including slowing economy of china reduces advertising sales also desktop search business of search giant loses users to smartphones.
Company revenue increased 15% to 24.1 billion yuan, to some extent under forecasts for 24.3 billion yuan. The search giant expects that revenue in the June quarter will be 25.1 billion yuan to 26.6 billion yuan, almost 14% under analyst estimates.
Share price of chinsese search engine dropped around 15.68% in early trading on 17 May 2019. Market Captilization of the Baidu is 45.30 Billion.

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