Baidu Inc's stock experienced a pre-market plunge of 5.10% on Tuesday, as the Chinese tech giant grappled with concerns over its position in the highly competitive artificial intelligence (AI) landscape and its perceived standing with the Chinese government.
The decline followed reports that Baidu's founder and CEO, Robin Li, was conspicuously absent from a high-profile meeting between Chinese President Xi Jinping and tech industry leaders on Monday. The meeting, which included prominent figures such as Jack Ma of Alibaba and Ren Zhengfei of Huawei, signaled Beijing's endorsement of the private sector's role in reviving the country's economic growth.
Baidu's absence from the event raised speculation about whether the company is falling out of favor with the Chinese government, which is relying on the private sector to drive innovation and technological self-reliance, particularly in the AI domain. The company's Hong Kong-listed shares plummeted 6.9% following the meeting, wiping out $2.4 billion in market value.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.