Shares of Chinese search engine Baidu Inc. (NASDAQ:BIDU) have continued to tumble since the company announced its most recent quarterly results on May 16.
The stock is currently down by more than 26% since releasing its first-quarter earnings. Based on the current trajectory, it looks like it has not reached the bottom yet for a rebound.
The Beijing-based company’s stock fell 1.5% on Thursday, adding to the declines witnessed over the last two weeks. Much of Baidu’s current woes are attributed to its weakening core business, which again posted dismal growth in the most recent quarter.
The company could be positioning for a major revamp, however, which could trigger the next growth phase. While its core business continues to experience pressure, Baidu has been making strides in other areas that could be key to taking it to the next level.
When you look at its closest peer on the other side of the planet, Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, the search engine space has been attracting more players that are taking unique approaches to disrupting the market.
For search engines, revenue comes from digital advertising. Based on developments over the last several years, Google’s market share has continued to contract. The search engine faces stiff competition from Facebook Inc. (NASDAQ:FB), while Amazon.com Inc. (NASDAQ:AMZN) has also joined the fray with its search advertising network.
In the case of Baidu, the competition is not as fierce. It still commands a market share of about 70% in China. In fact, despite the weakness in its core business, the company still managed to post a 15% increase in revenue from the prior-year quarter.
But the company’s intensive sales and marketing campaign during the 2019 CCTV Chinese New Year Gala (Chunwan) affected its margins. Reports indicate Chunwan is the most viewed TV