Baidu shares soar as net profit sharply higher

Apr 28, 2010
A Chinese worker cleans the balcony of Chinese Web search giant Baidu's headquarters in Beijing in February 2010. Baidu shares soared past 700 dollars on Wednesday after the Chinese Web search giant more than doubled its net profit amid Google's conflict with the Chinese authorities.

Baidu shares soared past 700 dollars on Wednesday after the Chinese Web search giant more than doubled its net profit amid Google's conflict with the Chinese authorities.

The Nasdaq-listed Baidu said rose 165.3 percent to 70.4 million dollars in the first quarter compared with a year ago while revenue increased 59.6 percent to 189.6 million dollars.

Baidu shares surged 13.90 percent to 707 dollars in after-hours electronic trading after gaining 0.20 percent during the day on Wall Street to close at 621.38 dollars.

"We delivered a quarter of record revenue and strong profitability despite the usual seasonality associated with the Chinese New Year holiday," Baidu chairman and chief executive Robin Li said.

"Looking ahead, we will continue to innovate and educate Chinese companies about the benefits of search engine marketing with Baidu," Li said.

Baidu forecast revenue of between 268.1 million dollars and 274.0 million dollars in the second quarter, a year-on-year increase of 67 percent to 70 percent.

Baidu will "aggressively expand our research and development and sales teams to drive improvements in technology and while investing in to support traffic growth," Jennifer Li, Baidu's chief financial officer, said.

said it had some 221,000 active online marketing customers in the first quarter, up 19.5 percent from a year earlier but a decrease of 0.9 percent from the previous quarter.

Google's relations with China have been strained since the Internet giant announced in January that it had been the victim of China-based cyberattacks.

last month stopped censoring Web search results on its Chinese search engine and began redirecting users to an uncensored site in Hong Kong.

The Wall Street Journal this week quoted Analysys International, a Beijing-based research firm, as saying that Google's share of China's Web declined in the first quarter.

It said Google's market share declined to 30.9 percent from 35.6 percent in the previous quarter while Baidu's market share rose to 64 percent from 58.4 percent in the previous quarter.

Explore further: Banjo's ability to track events in real time gives clients competitive edge

Related Stories

Baidu CEO draws big crowd in Google's backyard

Sep 24, 2009

(AP) -- The billionaire founder of a popular search engine drew a big crowd Wednesday at Stanford University - and it wasn't one of the guys that started Google Inc. just a few miles from the campus they ...

HP profits lower, to cut nearly 6,400 workers

May 19, 2009

US computer giant Hewlett-Packard reported a 17-percent fall in quarterly net profit on Tuesday and said it plans to cut two percent of its workforce, or nearly 6,400 workers, over the next year.

Washington Post stems tide of red ink

Jul 31, 2009

The Washington Post Co. reversed its slide and posted a quarterly profit on Friday despite a steep decline in advertising revenue at its flagship newspaper.

Taiwan's HTC says profit down 30 percent

Apr 06, 2009

Taiwan's smartphone maker HTC Corp posted a year-on-year 30 percent fall in first quarter net profit as the global economic meltdown hit sales, the company said Monday.

Executive who led Google's China expansion leaving

Sep 04, 2009

(AP) -- The executive who led Google Inc.'s expansion in China after being hired away from Microsoft Corp. following a high-profile court battle is leaving to start his own business, the U.S. search engine ...

Scripps up sharply on Wall St on surprise profit

Aug 10, 2009

US media company EW Scripps Co. reported a surprise quarterly net profit on Monday, despite a 29 percent decline in advertising revenue, sending its shares sharply higher on Wall Street.

Recommended for you

Shyp reclassifies contract couriers as employees

1 hour ago

Shyp, the quickly growing startup that provides on-demand courier services, said Wednesday it would reclassify its contract workers as employees, becoming the latest high-profile tech company to change how it compensates ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.