Baidu’s $66 Billion Dive Knocks It Out of China’s Top 5 Internet Companies
- Tencent’s closest gaming rival NetEase is now worth more
- Search giant Baidu faces threat from newer tech star ByteDance
The Baidu Technology Park in Beijing, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Baidu Inc. has dropped off the list of China’s five most valuable internet companies, underscoring the challenges facing the search giant from a weakening economy to intensifying competition.
NetEase Inc., China’s second-largest gaming house, has overtaken Baidu in market value after posting better-than-expected quarterly earnings last week. Shares of NetEase have gained 11% this year, while Baidu’s plunged 40%. The latter company, once touted as a member of China’s internet triumvirate alongside Alibaba Group Holding Ltd. and Tencent Holdings Ltd., has bled $66 billion of capitalization since its peak in May 2018 -- the equivalent of one Morgan Stanley.