Baidu, Inc. (NASDAQ: BIDU)

This investigation is for anyone who acquired securities in Baidu, Inc. (NASDAQ: BIDU) from May 21, 2025 to August 17, 2026.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by overstating the progress and ability of the Company’s AI business to mitigate rapid declines in the Company’s legacy business.

On February 26, 2026, the Company reported fourth quarter and full year 2025 financial results, including that “Total revenues were RMB129.1 billion ($18.46 billion), decreasing 3% year over year, primarily due to a decrease in Legacy Business, partially offset by an increase in Baidu Core AI-powered Business.” However, Baidu management assured investors its “results demonstrate AI’s growing contribution to Baidu’s value creation and our ability to translate AI capabilities into scalable commercial impact.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on August 18, 2026, the Company reported second quarter 2026 financial results, including that revenue of RMB 31.3B ($4.62 billion), another decline of 4% year over year. Management explained it is “deliberately holding back on monetizing the AI search” which has “weighed on our advertising businesses in the near term.” The Company further stated that “[t]he competition in this industry remains very intense” and “competition for users’ time and attention has intensified further.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Baidu, Inc. (NASDAQ: BIDU) from May 21, 2025 to August 17, 2026 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.