Baidu Earnings -- Investing Heavily in the Future
Chinese search leader Baidu, Inc. (NASDAQ: BIDU) reported earnings for its just-ended quarter, and results were better than expected. Its revenue of $2.45 billion was up 6.8% over the prior-year quarter and was largely in line with expectations. Earnings of $258.1 million were 10.6% lower year over year, but they beat expectations by a wide margin. While online advertising customers were down 23%, the ones that remained spent 27% more as the company works to improve the quality of its advertisers. This marked the continuation of its recovery as the company moved to clean up its advertisers, as well as marking a period of significant investment in the nascent field of artificial intelligence. Though things were better than expected overall, the stock fell 4% on the news. What's going on? Two things conspired to push the stock lower in the short term. Baidu continues its recovery. Image source: Baidu, Inc. Stock down on better results? First, Jen...
