Why Baidu Inc. (BIDU) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Baidu Inc. (NASDAQ:BIDU) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

A modern internet space with a person using Baidu services on a laptop.

Baidu Inc. (NASDAQ:BIDU)

Baidu shares dropped by 4.17 percent on Wednesday to close at $98.24 each to mitigate risks following a recent backlash against the company over privacy concerns following an executive’s daughter doxxing incident.

The incident stemmed from a 13-year-old daughter of a BIDU vice president who earned the ire of social media users, accusing her of doxxing incidents that resulted in the disclosure of user’s personal information, including their real names, state-issued ID numbers, phone numbers, and IP addresses.

His father, Xie Guangjun, who is currently vice president of the company, issued an apology, saying he regretted “not teaching his daughter to respect and protect other people’s privacy.”

Recently, Xie’s daughter was accused of taking part in a coordinated online attack against a pregnant woman, which exposed her personal information and hostile messages to her husband.

The woman became a target of harassment after disapproving of the demanding work schedule of a popular K-pop singer, causing the fan circle to retaliate.

Overall, BIDU ranks 5th on our list of Wednesday’s worst performers. While we acknowledge the potential of BIDU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BIDU but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.