Baidu (NASDAQ: BIDU), which owns China's top online search engine, was once considered one of that country's top tech stocks. But over the past three years, its stock has lost roughly 40% of its value as the company has faced tougher competition in digital ads.
Baidu plans to release its second-quarter earnings on Aug. 13, and the bar has been set pretty low. Baidu's previous forecast for itself called for revenue ranging from a 5% drop to a 4% gain, and analysts expect its revenue and earnings to decline by 2% and 4%, respectively.
Will Baidu clear those low bars and convince investors that its business its stabilizing? Or will it turn in a disappointing quarter that highlights the strengths of its rivals in China's crowded advertising market?
Source Fool.com