Baidu Shares Jump After Announcement of Massive Stock Buyback

By Lee Jackson Updated Jan 11, 9:50PM EST · Published Jun 27, 9:15AM EDT

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China’s leading search engine company, Baidu Inc. (NASDAQ: BIDU), announced a massive share buyback Wednesday. The company said its board approved a plan to buy back up to $1 billion of its shares, with repurchases taking place over the next 12 months.

The company stated in the press release that the proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations

The Chinese tech giant provides more than 40 products and services, including an online map. It also distributes products and services via a direct sales force, distributors and affiliate networks. In addition, Baidu also owns subsidiaries that have exposure in mobile app stores, video, fintech and groupbuy.

Shares have been on fire, having risen about 40% in the past year. They closed at $250.77 on Tuesday and traded at $255.80 in premarket action Wednesday. The company said in the press release that its board would review the share repurchase program periodically and may adjust its terms and size.

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The current stock repurchase plan compares with a similar plan the company announced in July of 2015 when it adopted a $1 billion share repurchase program after the stock got hit with some extremely hard selling. Many of the top Chinese technology stocks have been extremely volatile over the past month as worries over the potential for a trade war with the United States have rattled investors.

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.