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Baidu earnings: Chinese search giant’s stock up on AI cloud growth

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Yahoo Finance Live anchors discuss first-quarter earnings for Baidu.

Video Transcript

JULIE HYMAN: Let's talk about Baidu also, because that company came out with its numbers, too. It posted an unexpected increase in its revenue. And Baidu's interesting because it's a search giant, but it's been expanding in, really, everything else.

JARED BLIKRE: Like they all do.

JULIE HYMAN: Cloud computing-- yes, like they all do. Autonomous driving is what it's going to do as well. So revenue was up. It wasn't up much. It was only up by about 1%, but that was better than estimated. Online marketing revenue was down 4%, but the AI cloud business is where the growth is coming from. And that was up by 45%.

JARED BLIKRE: Right, and when we talk about regulatory risks-- I just kind of want to focus on this. You mentioned them branching out. What the Chinese government did with Alibaba was, they forced them to separate the banking activities. They don't want these guys acting like banks because that's where so many shady things can happen. But they also lose their ability to, I guess, manage and have a good overview of the entire banking system, because they're using shadow banking assets that can be very unmanageable. And then you have a problem because you have bubbles.

But Baidu facing potentially the same things. I don't think they're in banking. But when you try to do too many things over there, in a heartbeat, that can just go out the window without warning, so that's huge regulatory risk over there in these Chinese stocks, I believe.

JULIE HYMAN: Yeah, it seems like it is.