Why Baidu Shares Are Falling Today

Baidu Inc (NASDAQ: BIDU) is trading lower after the company announced its third-quarter financial results and issued guidance with a midpoint below estimates.

Baidu reported quarterly earnings of $2.28 per share, which beat the estimate of $2.01 per share. The company reported quarterly revenue of $4.954 billion, which came in below the estimate of $4.97 billion.

Baidu expects fourth-quarter revenue to be between $4.81 billion and $5.27 billion.

"Our AI Cloud is helping businesses better serve customers and move faster with greater efficiency. We are building Baidu Apollo smart transportation and intelligent driving to smoothen traffic congestion, accelerate the move to EV and reduce traffic accidents," said Robin Li, co-founder and CEO of Baidu.

Related Link: Baidu: Q3 Earnings Insights

Baidu is the largest Internet search engine in China.

BIDU Price Action: Baidu has traded as high as $354.82 and as low as $132.25 over a 52-week period.

The stock was down 5.48% at $161.88 at time of publication.