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<Editor's Pick>Can Baidu's diversified layout bring a higher market value to it?
On May 18, China's top Internet search company Baidu announced its first quarter earnings report for 2020 after the US market close. Due to the impact of the epidemic in the first quarter, Baidu's shares have also been affected to a certain extent, but its revenue and profit indicators have been greatly improved.
According to the financial report, Baidu's revenue growth exceeded market expectations, and net profit turned into a profit, up 219% year-on-year. Despite the impact of the epidemic in the first quarter, the macroeconomic environment faced many challenges, but Baidu still handed over a performance report with a lot of highlights.
Before the release of this financial report, Baidu founder Robin Li conducted a personal debut in Baidu app on May 15th. Overnight, Baidu jumped nearly 12 billion. From the perspective of market sentiment, investors are very optimistic about Baidu's new business line. In addition to the search business remained stable this quarter, the performance of multiple business lines has also become a major highlight in Baidu's earnings report. Behind the change in revenue structure, can Baidu's multiple business lines that have been deployed for many years support its higher market value?
Baidu's revenue exceeded market expectations
The financial report shows that Baidu's revenue in the first quarter was 22.5 billion yuan, a year-on-year decrease of 7%. The market's average expectation was 21.93 billion yuan, which exceeded expectations by 3% under the epidemic. Calculated by GAAP, Baidu's first-quarter net profit was 41 million yuan, compared with a net loss of 327 million yuan in the same period last year. After the financial report was released, Baidu's shares rose sharply, and in Monday's transaction, Baidu's shares rose 7.74%, with a total market value of $ 37.210 billion.
Affected by the epidemic, Baidu app's search also surged in this quarter conspicuously. In the first quarter, the number of Baidu's daily active users reached 1 billion, which provided the information on the epidemic. In March, Baidu app's daily active users reached 222 million, a year-on-year increase of 28%.