Shares in Chinese Internet search giant Baidu collapsed after the company offered guidance below Wall Street expectations.
At a market cap of nearly $50 billion, this is (as Bill Bishop reminds us) one of the biggest internet companies in the world.
Baidu said it earned $0.87 per share, slightly ahead of expectations for $0.86. Revenue was slightly weaker than anticipated, however, at $677 million.
The company also guided for second quarter revenues in the $847 to $867 million range, below the Street’s consensus.
“We’ve started the year with solid financial results and steady business progress,” said Baidu Chief Executive Robin Li. “Although this is usually a seasonally slow quarter, our effective sales and marketing efforts enabled us to expand our SME customer base significantly.”
Shares are nearly 9 per cent lower in after-hours trading.