Baidu shares were down as much as 14 percent after the company reported earnings which missed expectations Thursday.
The company beat estimated American Depository Share earnings, however missed revenue estimates. Revenue was up 29 percent over This particular quarter last year.
- Revenue: RMB 23.5 billion (approximately $3.53 billion) vs. RMB 23.6 billion ($3.56 billion), according to a Thomson Reuters consensus estimate
- Non-GAAP diluted earnings per ADS: RMB 26 (approximately $3.89) vs. RMB 13.55 ($2.04), according to a Thomson Reuters consensus estimate
The stock declined mostly due to lower-than-expected guidance for revenue for next quarter.
Revenue was projected to be RMB 22.2 billion ($3.35 billion), compared to a Thomson Reuters consensus estimate of RMB 24.8 billion ($3.73 billion).
“inside the third quarter, we made Great progress in our strategic pillars to strengthen our mobile foundation as well as lead in AI,” Baidu co-founder as well as Chief Executive Officer Robin Li said in a press Discharge.
“On strengthening our mobile foundation, our strategy to leverage Baidu’s leading AI technologies to enhance the user scale as well as user stickiness of Mobile Baidu can be showing measurable results. On our AI initiatives, we continue to focus on developing platforms for smart device as well as autonomous driving markets, as well as leveraging AI into vertical sectors, such as financial services,” Li said.