Baidu Stock Falls On Report Google Preparing Search Return In China  

Baidu (BIDU) stock fell following a report that Google could re-enter China's internet search market. Baidu late Tuesday reported profit that topped expectations.

New York-listed shares of Beijing-based Baidu, a search giant in its own right, fell 7.7% to 228.07 on the stock market today. Shares in Google-parent Alphabet (GOOGL) were up a fraction to 1,232.99.

Google plans to launch a censored search engine in China, the Intercept reported.

"Google's return to China is unlikely in the near-term due to the strained relationship between China and U.S. on trade," said James Lee, a Mizuho Securities analyst in a report. "At the same time, the search market in China has matured faster than the U.S. so it is less attractive from the financial point of view. Based on our checks, Google had a chance to re-enter into China a few years ago with YouTube and Play Store, but both times the company declined for various reasons."