On August 30, the Chinese search engine giant Baidu beat profit expectations driven by its efforts into new business and covering itself against economic slowdown.
Its adjusted earnings per share increased to $15.79, surpassing the market forecasts of $10.52 and exceeding the previous record of $11.22.
Meanwhile, its sales revenue declined to $23.16 billion, disappointing the analysts’ projections of $29.40 billion and missing the precursory reading of $28.41 billion.
In Tuesday’s pre-market session, Baidu’s stock traded higher by 3.38% to $152.30 per share.
Although the company’s core advertising sales continued to be modest, customers are signing up for its cloud services, which is the business’ key global key growth, as the demand for internet applications rise.
Furthermore, the entity’s net income grew to $521.72 million, higher than the $318.83 million estimates.
China’s largest technology firms have made peace with a fresh reality of low growth and gradual acceleration. It is over a year following Beijing’s crackdown on internet businesses, including eCommerce, social media, and education technology.
Besides, Baidu’s reliance on digital marketing left the Chinese company vulnerable to the same economic hurdles that pulled down its bigger tech giant competitors.
iQiyi’s stocks rose following Baidu
On Tuesday. Baidu’s Netflix-like video streaming platform iQiyi unveiled a revenue that was weaker than the market’s estimates.
However, it also published improving margin and an agreement to put $500.00 million of convertible notes with Hong Kong private equity entity PAG.
During the pre-market session in New York, the stock price of the Chinese video streaming service climbed by 3.00%.
Moreover, it recently announced that some parts of its ongoing drama series Fox Spirit Matchmaker will use Extended Reality (XR) Virtual Production.
This move marks a further step for the company in accompanying a strategic vision of upgrading its virtual production.
