Baidu shares dropped -6% Monday, after Susquehanna analysts cut price target on the stock.
Susquehanna lowered its price target to $170 from $200 a share. This followed Baidu’s less-than-expected first quarter earnings reported last week.
Adjusted earnings for the quarter came in at 41 cents a share, below analysts’ estimates of 40 cents a share. The company incurred a net loss attributable to shareholders of around $49 million - its first loss since it went public in 2005. In the year-ago quarter, it registered a net income of $970 million. The company – often touted as the Google of China – had a 47% year-over-year spike in content costs that touched $917 million, as it bulked up investments in video streamer iQiyi, while its research and development expenses went up 26%.