One Of The Biggest Internet Companies In The World Is Imploding After Ugly Earnings

baidu

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. 

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