Baidu shares slip on results, downgrades
SAN FRANCISCO (MarketWatch) — Baidu Inc. saw its U.S.-listed shares fall nearly 5% to .08 on Tuesday morning, after the stock was downgraded by at least two brokers following its fourth-quarter results. Stifel Nicolaus and Raymond James both lowered their ratings on the Chinese search engine firm to the equivalent of neutral, following what was classified as “in-line results” that included signs of increased spending by the company. “We applaud Baidu’s strategy of investing for the future, but we believe Baidu’s shares will be range bound until margins stabilize and its investment programs begin to bear fruit,” Stifel analyst George Askew wrote in a note to clients.
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