Shares of Baidu fell below US$200 during after-hours trading in the United States as China’s online search market leader reported fourth-quarter earnings that missed analysts’ estimates.
Nasdaq-listed Baidu posted a 16 per cent rise in net profit to 3.23 billion yuan in the quarter ended December 31, from 2.78 billion yuan a year earlier.
Its net profit, however, was lower than the 3.5 billion yuan average estimate of analysts surveyed by Bloomberg.
Baidu reported higher promotional spending on mobile products and services, as well as research and development costs.
Alicia Yap, the head of China internet research at Barclays, said in a recent report that Baidu was expected to continue its investments in sales, marketing and promotional campaigns, as well as boost research and development spending.
Baidu’s share price fell 2.17 per cent to close at US$214.67 at the end of regular trading on Nasdaq. In after-hours trading, its shares tumbled 9.82 per cent to US$193.60.