Baidu earnings and revenue topped expectations

Baidu earnings and revenue topped expectations

The Chinese giant is looking to expand in the artificial intelligence semiconductor business

Baidu, the Chinese search engine company, reported fourth-quarter figures that beat forecasts.

The company announced an EPS of $20.08 on revenues of $30.26 billion. The markets were expecting an EPS of $17.78 and a revenue of $30.02.

The report came just days after CNBC revealed that it is in talks to raise money to create a stand-alone AI semiconductor company. This decision is seen as a way for the Chinse companies to secure their spot in the chip sector, and Baidu’s efforts to diversify beyond advertising. Since September, Baidu raised money for a biotech firm and an electric vehicle company.

Despite the results, the market reacted negatively, Baidu closing the session 5.37% lower. However, year-to-date, the company’s stock price went up 42%, while TECH100 added 8.36%.

Sources: investing.com, cnbc.com

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