BIDU stock rose early Tuesday, after Chinese internet giant Baidu (BIDU) reported earnings and sales ahead of expectations for its third quarter.
For the three months ending Sept. 30, Baidu said it earned an adjusted $2.80 per share, ahead of analysts expectations of $2.39 per share, according to FactSet. Meanwhile, sales climbed 6% year over year to RMB 34.4 billion ($4.7 billon), topping expectations of RMB 34.2 billion.
In premarket trading on the stock market today, American-listed BIDU stock was up 1.2% at 112.65 in recent action.
BIDU Stock: AI Push
Baidu, which operates the second-largest search engine in the world, said average monthly active users for its app reached 663 million in September, up 5% from the same period last year.
Online advertising revenue climbed 5% in local currency, totaling $2.7 billion.
In October, Baidu launched the latest version of it Ernie artificial intelligence chatbot. The company credited its AI efforts with helping its results for the quarter. AI tools have been integrated within Baidu’s consumer and enterprise products, the company said.
“Our AI-centric business and product strategy should set the stage for sustained multi-year revenue and profit expansion within our Ernie and Ernie Bot ecosystem,” said Robin Li, Baidu co-founder and chief executive, in a news release.
Nasdaq-listed BIDU stock has lost 2.7% this year as of market close Monday. BIDU shares fell in sympathy with Chinese internet giant Alibaba (BABA) last week, after Alibaba officials called off a planned spinoff of its cloud-services business. The company cited U.S. restrictions on exporting high-end computing chips to China.
Further, BIDU stock holds a meager Composite Rating of 62 out of a best-possible 99, according to IBD Stock Checkup IBD’s Composite Rating combines fundamental and technical metrics for an overview of a stock’s strengths. The best-rated growth stocks have a Composite Rating of 90 or better.
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