‘China’s Google’ Logs First Ever Quarterly Loss
Thanks in part to a slowing economy, Chinese internet giant Baidu faces a rocky road ahead after reporting a Q1 net loss of $47.5 million. Surging research and development costs and investment in video streaming contributed to its first quarterly loss since going public in 2005, and American repository shares fell 8 percent yesterday in extended trading. “For senior managers, saying ‘I have tried’ is not enough,” CEO Robin Li said in a memo to employees.
How big is Baidu? Although it commands 70 percent of China’s search market, rivals like Alibaba and Tencent are challenging its dominance through so-called “super apps.”