Investors: Baidu ’s non-compliant operations caused losses.
On April 22, according to Bloomberg News, Baidu (BIDU.US) encountered a class action lawsuit in the United States a few days ago, because the company failed to comply with China ’s Internet regulations, which caused its share price to fall, causing losses to investors.
The class action lawsuit was filed by investor Roger Ikeda in the Federal Court of San Francisco. Roger Ikeda said in the indictment that Baidu ’s share price suffered a “deep decline” after the Chinese Internet regulator ordered Baidu to stop disseminating “vulgar and vulgar information”, which fell by 4.38%.
In addition, on April 22, Barclays Bank announced a reduction in Baidu’s target price from $ 150 to $ 132. Affected by the above news, Baidu’s stock price fell nearly 4% before the market.
On April 8 (the second day of rectification), Baidu ’s share price fell by 4.38%. Source: Snowball
On April 7, Baidu was interviewed by the Internet Information Office. Due to the problems of “disseminating vulgar and vulgar information” and “intensively publishing” Title Party “articles” and other issues, some channels of Baidu App will stop content update from April 8, including 5 channels of recommendations, pictures, videos, finance and technology. It is not clear when the recovery time will be.
mentioned in previous analysis articles, The rectification of some key content channels of Baidu App will affect the user activity and duration of this main application, which will drag down the revenue of its main information flow advertising business. Coupled with the overall downward trend of the advertising industry affected by the epidemic, Baidu’s main business recovery time will be lengthened.
As of press time, Baidu ’s share price was up to US $ 102.88 per share, up 1.45%, and its market value was US $ 35.618 billion.