Now, while Alibaba and Tencent are still favored by investors, Baidu is losing its luster.
At market closing in the United States on Wednesday, Baidu's share price was at $94.85, taking its market capitalization down to $33.2 billion. Meanwhile, NetEase, which operates in the gaming, music and e-commerce sectors, closed at $262.13, hitting a market cap of $33.5 billion.
The value of Baidu's shares has dived by 40.2% since the start of this year. In the same period, that of NetEase has gone up by 11.4%.
NetEase is one of China's first internet companies. It booked RMB 3.07 billion ($447.4 million) in net income in the second quarter of this year, up by 46% year-on-year. Baidu reported its first ever quarterly loss in May, triggering a sell-off.
Baidu is experiencing pressure from all sides. ByteDance, which runs the popular short video app TikTok as well as content aggregator app Toutiao, has unveiled a search engine portal, threatening Baidu's core business. ByteDance is valued at around $75 billion and is China's most valuable startup.
Previously, the market capitalizations of on-demand service provider Meituan and e-commerce giant JD.com also surpassed that of Baidu, giving investors additional reasons to look to other major technical companies.
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