(Reuters) – Chinese search engine giant Baidu Inc forecast second-quarter revenue above expectations on Monday, as businesses reopen in the world’s second-largest economy after strict lockdowns to curb the spread of the coronavirus.
A logo of Baidu is seen at the company’s headquarters in Beijing, following the novel coronavirus disease (COVID-19) outbreak, China May 18, 2020. REUTERS/Tingshu Wang
Baidu’s U.S.-listed shares jumped 8% in extended trading after the company also reported a smaller-than-expected drop in first-quarter revenue and easily beat profit estimates.
China’s stalled economy is starting up much earlier than Europe and the United States, which are easing restrictions gradually as they struggle with high reported infections and deaths from COVID-19, a disease caused by the novel coronavirus.
Baidu forecast current-quarter revenue between 25.0 billion yuan and 27.3 billion yuan, while analysts on average had expected 25.55 billion yuan.
The company said daily active users for Baidu App surged