Baidu Announces Cut In Quarterly Projection

The forecast is due to recent advertising criticisms

Baidu has announced a cut in its quarterly revenue projection, apparently due to the recent scrutiny it has come under regarding its paid search results. In the statement, the company said that it was reducing its second-quarter revenue forecast from over 20 billion yuan, to 18 billion yuan. Following the recent announcement shares in Baidu fell another 5%, after falling 13% since the beginning of this year. Criticism has been directed at the company following the controversial death of a Chinese student, Wei Zexi, where it was claimed that it was advertising misleading medical treatments. Since then, Baidu has been hit with strict new regulations and has itself banned advertising that it deems too risky. This has led to what they call “short-term uncertainty” from users.

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