Baidu Down Sharply After Latest Results Show a Loss

Baidu's CFO cautioned investors on a challenging outlook for its online marketing business.

Author:: Annie Gaus
Publish date:: May 16, 2019 5:56 PM EDT

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Baidu (BIDU) - Get Report fell sharply in after-hours trading Thursday after the company's latest financial results showed a loss.

Baidu American Depositary Shares fell 8.4% after hours as investors scrutinized the results.

The Chinese search and Internet giant posted quarterly revenue of $3.59 billion, and a net loss attributable to shareholders of $47.5 million.

In a press release, Baidu's CFO Herman Yu warned of a difficult environment for its 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."

Baidu also announced that a longtime SVP of search, Hailong Xiang, has resigned after 14 years at the firm. Replacing Xiang is Dou Shen, previously VP of mobile products.

The company set plans for a $1 billion share buyback program as well.