Baidu’s Shares jump up after second quarter earnings that beat expectations

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Baidu shares Tuesday rose over 8% after the Chinese online-search engine posted spectacular earnings for the second quarter 2019. Some analysts suppose the shares can go up additional.

At least 4 analysts elevated their goal worth after the corporate introduced their earnings whereas two decreased their goal. The common goal worth for the following 12 months is about $143, in keeping with 30 analysts polled by Bloomberg. Since this 12 months till August 16, Baidu shares have been down virtually 40%. The inventory surged 7.8% on Monday and went up one other 7.2%, then surged over 8% in U.S. after-hours commerce after it reported earnings for the second quarter that beat market expectations

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Here are second quarter abstract:

Revenue of 26.3 billion yuan, or $3.83 billion, in keeping with the trade fee revealed within the firm’s earnings launch. That represented a 1% year-on-year improve or 9% on the quarter. Revenue beat market expectations of 25.76 billion yuan.

Earnings per share of 10.11 yuan, beating estimates of 6.12 yuan. That was a 54% year-on-year decline however a greater than 260% improve from the earlier quarter.

Baidu’s core promoting and advertising providers generated income of 19.5 billion yuan, reducing 2% year-on-year however rising 12% on the quarter. Given that this makes up round three quarters of the corporate’s income, this can be a constructive growth.

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The search large posted a robust progress for its personal cell app. Daily lively customers for the app reached 188 million in June, rising 27% year-on-year. In-app search queries grew over 20%.

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Baidu’s streaming service iQiyi additionally posted subscriber numbers of 100.5 million in June 2019, rising 50% year-over-year.

But Baidu nonetheless has areas to work on.

“I would say this quarter’s results are just ‘less bad’ or better than investors feared,” Xueru Zhang, senior analyst at 86Research, advised CNBC. “The ad market still shows no signs of recovery. What Baidu can do is to improve its own products.”

“At least (the) topline performance stabilized (in terms of) quarter-on-quarter growth, while year-on-year remains challenging in the second half of 2019,” Zhang added.