Baidu tops estimates, as the Chinese economy is starting to rebound
The Chinese internet giant Baidu posted its Q3 2020 earnings leaving the markets impressed.
In Q3, Baidu had an adjusted EPS of $3, topping the $2.05 expected. Compared to last year's numbers, the EPS surged 61%.
From last year's figures, sales went up 1% coming in at $4.16 billion, and beating the $4.14 billion consensus. The fact that the Chinese economy rebounded at a steady pace in the past quarter and the AI businesses have been in demand, led to the reported growth.
For the future, Baidu expects its revenue to reach a high of $4.6 billion, while analysts forecast $4.38 billion. The company also announced that it is looking to buy the live-streaming business from Joyy for $3.6 billion in cash. After the deal is completed in the first half of 2021, Baidu will be part of the fastest-growing digital video market.
Following the news, Baidu stock price gained 1.9%. Year-to-date, the company's stock price went up 17%, while USA500 inched 12% higher.
Sources: tipranks.com, investing.com