Benzinga - Chinese technology company Baidu Inc (NASDAQ: BIDU) reported earnings after the close yesterday, beating revenue and earnings estimates.
The company’s strong quarter was attributed to strength in advertising revenue, cloud computing and its artificial intelligence business.
Baidu also announced a stock buyback program of about $5 billion. But, the stock is trading lower today, down about 4% in Wednesday’s session.
Alibaba Group Holdings (NYSE: BABA) was also trading lower Wednesday morning as the company preps to report earnings after the close on Thursday.
Chinese stocks have been extremely volatile throughout the last year or so as investors weigh not only the country’s COVID-19 policies but also geopolitical risks regarding the tension between China and Taiwan.
In fact, from July 2022 to October 2022, the KraneShares CSI China Internet ETF (NYSEARCA: KWEB) dropped by more than 44%. But, since October 2022, the same fund is up more than 60%.
Baidu’s Answer To Chat GPT: Baidu’s AI chatbot, Ernie, was a key focus in the company’s earnings call. According to Baidu CEO Robin Li, the company plans to integrate Ernie into a number of different business verticals, including smartphones and cars.
"The Chinese AI market is on the verge of experiencing explosive growth in demand, releasing unprecedented and exponential commercial value," Li said. "Baidu stands as the best example of the long-term growth of China's AI market and is advancing at the forefront of this new wave."
Image by Gerd Altmann from Pixabay
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