Mizuho Corporate Global Reports Baidu Q4 Revenues Jumps 33%


Posted March 12, 2016 by mizuhocorporate

China’s answer to Google, Baidu reports 33% increase in quarterly revenue as advertising demand surges.

 
Chinese internet search giant, Baidu, has reported a sharp jump in quarterly revenues for the final 3 months of 2015. A surge in demand for advertising at the company often described as “China’s Google” saw the amount of money the company earned to 18.7 billion yuan or US$2.86 billion.

The revenue print was a sharp increase on the same 3-month period last year when it came in at 14.05 billion yuan.

“Baidu has been committing resources to a sustained bid to diversify away from its core business, internet search advertising which is not as profitable on mobile devices as it is on desktops and laptops,” said Harry Coolidge, a senior economist at Mizuho Corporate Global. “They’re getting into video streaming, e-commerce, cloud storage and music downloads as well as others in the pipeline but search is still their bread and butter,” he continued.

After the earnings report, Baidu’s stock jumped 12% to $177.10 in after-hours trading.

Mizuho Corporate Global says it sees the company’s diversification efforts as closely emulating those of Google, which famously quit the Chinese market over censorship of internet search results.

“Baidu has over 70% of the internet search market in a country of 1.3 billion people, most of whom prefer mobile devices over personal computers, so it makes a great deal of sense that they should invest in areas most likely to build revenue on those user dynamics,” said Coolidge.

The firm says it sees Baidu as a key hold in its Asian markets portfolio despite the headwinds the Chinese economy currently faces.

About Mizuho Corporate Global:
Mizuho Corporate Global is an independent, full-service brokerage, wealth management and business management concern dedicated to providing pioneering capital appreciation and wealth preservation solutions to affluent individuals and families and businesses.

Without exception, they place the welfare of their clients first and foremost and they take great pride in knowing that they are the first port of call for their investment and financial affairs. They constantly exceed our clients’ expectations by going the extra mile to deliver the service and, most importantly, the returns on investment their patronage demands.
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Categories Business , Computers
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Last Updated March 12, 2016