Baidu CEO Says "Winter is Coming" in China's Economy; Reports Strong Guidance for 2018
Shares in Baidu were trading up more than 3 percent intraday Wednesday after the company released revenue guidance for 2018 in line with analysts' estimates.
Shares in Baidu Inc. (Nasdaq: BIDU) jumped 3 percent in early afternoon trading Wednesday to $163.93 after the search engine giant released strong guidance for 2018 despite a decelerating economy in China.
In an internal welcome-back letter to Baidu employees at the beginning of the new year, its chief executive and co-founder, Robin Li, said that "winter is coming" as China's economic growth has slowed, as reported by the South China Morning Post today.
Nevertheless, in a filing with the U.S. Securities and Exchange Commission, the Beijing-based company said that its revenue last year exceeded 100 billion yuan (US$14.6 billion), in line with analysts' estimates.
In his message, Li urged his team to step up its game, the SCMP wrote, as the tech company has been pushing its research and development in artificial intelligence, autonomous driving, and other areas.
"Only when the year grows cold do we see the qualities of the pine and the cypress," Li wrote, citing a Chinese proverb, according to the report. "It's high time that Baidu stepped forward as a platform company."
China has been facing its slowest growth in decades, further dampened by a tit-for-tat tariff war with the United States. Over the past year, the stock of Baidu has dropped 32 percent compared with its close price of $242.40 per American depositary share a year ago.
Shares in Baidu were trading up more than 3 percent intraday Wednesday, at $163.93 apiece, after the company released guidance for 2018 in line with estimates.
(Source: Thomson Reuters Eikon)