Money Matters - Simplified

Baidu expected to disclose record breaking profits

Baidu benefited much from Google's leaving China, but faces close competition from Qihoo.

Baidu, China's domestic search engine is all set to reveal its financial status for the recent quarter. The third quarter figures and deductions will be made on Monday.

Analysts foresee Baidu riding its luck in near future, they are already predicting not less than 50 percent hike.

Its growth is a pain in the backbone for the market competitors, though world giant Google had discontinued its services in the country months back.

The earnings that are looked at as brilliant by many, are actually still finding it hard to match the undisputed figure of 174% hike that Baidu registered in the second quarter of 2010. Since then the search engine hasn’t been able to achieve that mark.

Moreover, the stock ended Friday below the line for the 10th week in a row, a sign of recognizable slow down. It has started showing consistent rise, though briskly. The company witnessed a 12 percent hike in the stock's breakout in July 2011.

Worth mentioning are the giant profits the company made since it began operating seven years ago. China, the world's most populous country, has the maximum number of users of internet. Baidu was the biggest beneficiary of Google's exit and now enjoys a market share that exceeds 80%.

Qihoo 360 Technology, Baidu's chief rival, has repeatedly shown similar growths. Qihoo leads in the distribution of security-related software, including programs to protect against viruses, adware and other malware.

Aiming at expanding its services, Qihoo recently launched its search engine. It has garnered rave reviews and Baidu's cynics believe it may lose out a lot of business to Qihoo. Qihoo will report its quarter results on November 13.