Biadu (BIDU) - Get Baidu, Inc. Sponsored ADR Class A Report , the so-called Google of China, was falling 6% in trading Monday to $125.56 after the company's price target was lowered by analysts at Susquehanna following its disappointing first quarter results.
The firm lowered its price target to $170 from $200, share, representing a potential 11% upside from stock's closing price Friday of $128.31.
The company posted first-quarter revenue of $3.59 billion, and a net loss attributable to shareholders of $47.5 million. It was Baidu's first loss since it went public in 2005.
Adjusted earnings in the quarter were 41 cents a share. Analysts were calling for revenue of $3.53 billion and adjusted profit of 40 cents a share.
However, analysts were worried about the company's commentary on the macro environment, which could make it tough on the company going forward.
"Tighter government scrutiny on content, cutbacks from the VC community and so forth," CEO Robin Li said.
Baidu Chief Financial Officer Herman Yu also warned of a difficult environment for the company's online marketing business.
"Despite government policies to improve the market condition for SMEs, we anticipate online marketing in the near term to face a challenging environment. We will take this opportunity to improve our monetization capabilities and review our businesses for operational efficiency, while recognizing the importance to invest for sustainable long-term growth."