Baidu's New Search Rival Is the World's Most Valuable Startup
Baidu's (NASDAQ: BIDU) stock has plunged nearly 60% over the past 12 months amid concerns about its slowing ad sales and declining profits, as well as competition from rivals like Sogou (NYSE: SOGO), Alibaba's (NYSE: BABA) Shenma, and Tencent's (OTC: TCEHY) WeChat. The economic slowdown in China, the escalating trade war, and the yuan's depreciation have exacerbated the brutal sell-off.
Baidu's net loss in its first quarter, the first time it saw red ink since its IPO, also indicated that the company spent too much cash on marketing efforts and expansions into adjacent markets -- including driverless cars and AI speakers -- without improving its core advertising business.
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