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Baidu shares tumble as Google reported to re-enter China
Baidu shares tumble most since May on report Google to launch a censored search app in China – SCMP
What happened: Shares of Baidu dropped 7.7% on 1 August, in New York trading after Google was reported to launch a censored product to re-enter China. This is the biggest drop Baidu shares has gone through since the announcement in May that the company’s chief operating officer Lu Qi would step down.
Why it’s important: Despite all the fanfares to become an artificial intelligence company, Baidu’s revenues still heavily depend on online advertisements, which seems to be threatened by Google’s possible return. The slump in Baidu shares also reveals the fact that Baidu’s dominance in the search engine market is still fragile even 8 years after Google’s exit.