NEW YORK (TheStreet) -- Shares of Chinese Internet firmBaidu (BIDU) - Get Report have dropped nearly 17% Tuesday and are now down nearly 28% this year after the company reported one of the "worst quarters of the year," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Baidu reported in-line revenue results and topped earnings per share estimates but provided weak revenue guidance for next quarter.

According to Cramer, among the many turnoffs for investors in the Chinese company is an 80% year-over-year increase in spending. In addition, analysts at Baird and Goldman Sachs downgraded the stock to hold from buy.

Baidu BIDU data by YCharts

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Cramer is skeptical the company will succeed in its efforts to get into other businesses, such as streaming video. He said Baidu management is pinning its hopes on these plans working out. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.