NEW YORK (TheStreet) -- Shares of Chinese Internet firm Baidu (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.
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.
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.