BAIDU’S EARNINGS MISS EXPECTATION
China’s leading online search engine BAIDU.COM posted a net profit of 3.66 billion yuan or about 591 million U.S. dollars in the second quarter of 2015.
Though up 3.3 percent on year, it still missed the market expectations.
Baidu, a Chinese web services giant headquartered in Beijing, reported a total revenue of about 2.67 billion dollars in the second quarter, up 38.3 percent on year.
But the results still failed to meet the market expectations, which led to a stock price tumble of 4.16 percent on the overnight Nasdaq market and another 7.62 percent in the after-hour trade on Monday.
The company has predicted to see a revenue jump in the third quarter at a range of 34.4 percent to 37.4 percent on a yearly basis.
Company executives have said that the company is well positioned in the market, as more people using smartphones or tablets to access the Internet.
The earnings report shows that some 629 million people used Baidu mobile search during the month of June, an increase of 24 percent from the same month last year.
Baidu also invests in other technology areas including artificial intelligence, and has taken a stake in the global ride-sharing service Uber.