“Although the Chinese government has announced many economic policies to bolster the economy … we are taking a cautious view that online marketing in the near term will face a more challenging environment,” Li said during an earnings call.
China’s economic growth has slumped to a near three-decade low in recent months, as the country grapples with an escalating trade war against the United States and tries to rein in high levels of debt.
Baidu is trying to broaden out its sources of revenue beyond its core search business, investing billions in areas like artificial intelligence and self-driving vehicles.
The company announced Thursday that the head of its main search business, Hailong Xiang, had resigned after 14 years at the company. Baidu named its vice president of mobile products as his successor, saying the mobile and search businesses would now be combined into one.
The company’s disappointing performance was in contrast to its two main Chinese tech competitors, Tencent (TCEHY) and Alibaba (BABA), both of which reported strong earnings earlier this week.
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