Baidu Unveils $5 Billion Buyback After Sales Beat Estimates
- Revenue holds steady despite a downturn in Chinese advertising
- Baidu is promising to unveil its ChatGPT-like Ernie bot soon
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Baidu Inc. announced a $5 billion share buyback after reporting better-than-expected revenue, reflecting how its cloud computing service is offsetting an advertising lull during China’s economic downturn.
Its shares slid as much as 3.6% Thursday despite the beat, as investors partly cashed in a 22% rally that made Baidu one of Hong Kong’s best performers in 2023. That run-up quickened after the company unveiled plans to incorporate a ChatGPT-like service in its search engine this March, spurring speculation about whether AI can revive growth at the internet giant.