Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Slumps 2% Despite Broader Rally
Shares of Baidu.com, Inc. (ADR)(NASDAQ:BIDU) fell $2.50 or 2.10% to $118.07 on Tuesday despite the fact that the broader markets jumped with the DOW gained over 100 points.
Last week, there were reports that the China’s search engine is collaborating with tech giant, Apple for providing its search engine in China’s iPads and iPhones.
The news has overshadowed investors concern over the slowing economy in China which had made shares fall 11.77% in May. But the shares popped up $7.96 in the last trading week on the collaboration news which help the search giant in China raise its mobile search service revenue wherein the Company’s mobile search service gets 35% of total unique website requests.
Baidu holds 78.3% of China’s online search market by revenue and after the exit of Google from main China.
But, the internet Company might face certain problems after the announcement of a stringent website regulation by China’s Government. As per the recently announced regulations, Internet companies will be forced to apply for a license if they’re running a microblog or forum. This might impact several U.S. social networking companies inversely if they tried to expand their networks into China.
The Company is all set to offer the mobile market its newest smartphone which is designed to run on Baidu’s own search system, Baidu Cloud, and will provide users access to applications including maps and licensed music services. The new product carries 100 gigabytes of storage on its cloud system and is being developed by Foxconn International Holdings Ltd and is estimated to be priced under CNY1000 ($157 USD).
Leave a Reply