Baidu Inc. the Chinese Search Giant has announced further revenue drops during the fourth quarter (Q4) of 2016. The Chinese Search Giant, Baidu Inc. has warned its investors that their revenue is about to fall in the fourth quarter of 2016 which will ultimately be affecting the share holders. The reason for all this is said to be the government crackdown on healthcare advertising which ultimately placed in the place it is right now.
Baidu on Thursday this week has announced 0.7 percent revenue drop and following it the firm is expecting as big as 4.6 percent in the October-December period this year. And as soon as the news went over the air, as much as 4 percent of the shareholders backed off from the firm leaving the firm in loss.
Baidu has a net value of around 60 Billion Dollars but now that’s suffering too, as the revenue is constantly going down and this highlighted even more when a student with a fatal cancer blamed the firm’s ads for directing him to do something unwilling, ultimately leading to ineffectual treatment of the patient.
As estimated by some experts, the firm’s fourth-quarter revenue will be around 17.84-18.38 billion Yuan summing up around $2.63-2.71 billion which is 4.6 percent lesser than the same period an year earlier.
Jennifer Li who is the Chief Financial Officer (CFO) at Baidu stated, “Q4 is what we consider to be the bottom, we will see a more pronounced impact over the next quarter.”
The problem is major and so is the suffering both sides faced and Baidu seems to be facing it even now as its market value is going down, people are backing off from it and God knows what more is about to come.