Baidu posts strong results but sees headwinds in H2
The company’s shares dipped 8% in extended trade
Stocks impacted: Baidu (BIDU)
Baidu reported its second-quarter earnings and revenue that topped expectations. The Chinese search engine giant’s revenue fell 1% to 26.0 billion yuan ($3.8 billion) from the same period a year earlier but was better than an average estimate of 25.7 billion yuan. Earnings per share arrived at 14.73 yuan versus 9.31 yuan expected. For the third quarter, the company said its revenues could drop by up to 6% year on year, citing a very limited business visibility. At the same time, Baidu has warned of headwinds in the second half of the year from geopolitical tensions and the Covid-19 pandemic. The company’s shares dipped 8% in extended trade, being pressured by the disclosure that its 56%-owned iQIYI video unit is being investigated by the U.S. Securities and Exchange Commission.
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