Google's Chinese Rival Hits Growth Roadblock Amid Mass Layoffs After Disappointing Q3

Benzinga

Baidu’s growth metrics collapsed after Q3 results showed a 7% revenue drop and an 18% decline in online advertising, pushing the company into the 1st percentile of growth rankings. The weak report follows major layoffs affecting up to 40% of some mobile-ecosystem teams. Shares slipped slightly despite being sharply higher year to date.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Baidu's growth metrics collapsed after its third quarter report showed a 7% revenue decline

00:08and an 18% drop in online advertising revenue, according to Benzinga.

00:13Baidu's plunge to the first percentile in growth ranking shows that its recent financial results

00:17sharply weakened its short-term growth story compared with its peers.

00:21Baidu's collapsing growth score reflects the week's operational turmoil,

00:25including mass layoffs that could cut up to 40% of staff in certain mobile ecosystem teams.

00:30Baidu's shares closed at $118.99 on Tuesday, slipped 0.60%, ticked up 0.24% after hours,

00:39and were down 0.83% in Wednesday's pre-market.

00:42The stock is up 43.88% year-to-date and 38.39% over the past year.

00:48For all things money, visit Benzinga.com.

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