Baidu renders better-than-expected quarterly revenue

Chinese search engine Baidu Inc gained above expectations, with its quarterly revenue recording a 1% increase. In a bid to diversify its revenue sources, the company had also announced its interest in buying YY Live for $3.6 billion, a streaming platform developed by social media firm JOYY Inc.

Baidu’s advertising sales cover large portions of the company’s revenue. After hitting low levels earlier this year due to lockdown restrictions, ad spending reached low grounds. However, it recovered together with China’s economy after retail sales and industrial output placed above expectations.

More so, its streaming affillate iQIYI had seen a 7% on-year growth in membership revenue, directly benefiting Baidu. However, the former was put under investigation by the U.S. Securities and Exchange Commission after short-seller Wolfpack Research reported anomalies regarding user numbers, revenue, and prices.