Why Baidu Stock Popped 12% This Morning

Shares of Chinese internet search giant Baidu (NASDAQ: BIDU) surged in early trading Tuesday, rising more than 12% before turning around and giving back more than half of those gains. As of 12:30 p.m. EDT today, Baidu stock was up 4.7%.

The initial enthusiasm is pretty easy to understand. Reporting Q1 2020 results last night, Baidu said it earned pro forma profits of $1.25 per American depositary share (ADS) in the quarter, more than twice what it had earned a year ago, and more than twice analysts' projected $0.57 per share in pro forma profits.

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