Baidu net profits up, but investors recoil

In its first earnings report since its August public offering, Chinese Internet search engine Baidu.com reported a US$1.1 million third-quarter net profit on sales of US$11.1 million, an amount nearly triple that from the previous year, but investors responded by selling off Baidu shares in after-hours trading, according to media reports. Quarter-to-quarter comparisons did not fare as well, as profits were down 29% from the second quarter, reflecting higher employee stock-compensation costs, Baidu said. The company's NASDAQ-traded shares declined 15.5%, equivalent to US$12.55, on the report.