(MENAFN- FxPro) U.S. shares in Baidu Inc (NASDAQ:BIDU) plummeted more than 7% in after-hours trading, after the Chinese web portal posted second quarter earnings below analysts' forecasts on Monday afternoon.
The company reported adjusted second quarter revenue on Monday of $2.67 billion, below its own forecasts of $2.93 billion to $3.02 billion. As a result, Baidu posted earnings of $1.81 per share, below expectations of per share earnings of $1.87.
Still, Baidu's chairman and CEO Robin Li appeared optimistic about the company's short-term outlook in spite of the subdued earnings. The internet's search provider's mobile search active user level rose to 629 million in June, a spike of 24% on a year-over-year basis.
"With Baidu's cornerstone search business delivering solid growth and enjoying ample runway ahead, and with powerful mobile gateways to leverage, we are ideally positioned to capture the O2O e-commerce opportunity and build the 'Next Baidu'," Li said in a statement. "As we continue to connect people with services and enable closed loop transactions, we are creating a transactional business model as Baidu grows and evolves in the age of mobile."
Chinese equities markets plunged more than 8% on Monday to fall to its lowest level since 2007. The prolonged sell-off occurred, amid a decision by regulators to increase equity purchases by the State-backed China Securities Finance Corporation. In recent weeks, Chinese stocks have reportedly lost up to $3 trillion as the economy has grown at its slowest rate in more than a decade.
Shares in Baidu fell 14.08 or 7.12% to 197.68 in after-hour trading.
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