2023-05-16 08:36:57 ET
Chinese tech stocks were largely in the red in pre-market trading on Tuesday despite stronger-than-expected results from industryl stalwarts Baidu ( NASDAQ: BIDU ) and iQiyi ( NASDAQ: IQ ).
Shares of Alibaba ( BABA ) and JD.com ( JD ) each fell around 1% , while Tencent ( OTCPK:TCEHY ) slipped around 0.5% .
Baidu ( BIDU ) erased earlier gains and fell fractionally even as the company said it earned $2.34 per share during the first-quarter, easily topping estimates of $1.84 per share.
In addition, Baidu ( BIDU ) said it generated $4.54B in revenue during the period, aided by an 8% year-over-year increase from Baidu Core to $3.35B. Online marketing revenue rose 6% year-over-year to $2.42B, while offline marketing revenue rose 11% year-over-year to $928M.
The company also generated $1.22B in revenue from its stake in iQiyi ( IQ ), up 15% year-over-year.
Adjusted EBITDA during the period was $1.19B, including $1.02B from Baidu Core.
Shares of iQiyI ( IQ ) rose around 1% as the company said it earned an adjusted 14 cents per share on $1.2B revenue, up 9.1% year-over-year, during the most recent period.
The company ended the quarter with 128.9M subscribers, up from 101.4M in the year-ago period and 111.6M in the fourth quarter. Membership services revenue rose 24% year-over-year to $807.8M during the quarter, while online ad revenue rose 5% year-over-year to $204.4M.
Following the results from Baidu and iQiyi, several other Chinese tech stocks fell in pre-market trading, including Pinduoduo ( PDD ), Bilibilii ( BILI ), and NetEase ( NTES ).
The KraneShares CSI China Internet ETF ( KWEB ) also dipped more than 1% in pre-market trading.
More on Baidu and Chinese tech stocks
- Baidu: Future AI Giant With Improving Core Ad business
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Chinese tech stocks sink despite strong results from Baidu, iQiyi