Why Did BIDU Stock Jump Nearly 5% After-Hours Today?

• Baidu said its buyback will run through 2028.
• The Chinese internet giant will pay its first-ever dividend this year, though details are pending.
• Stocktwits sentiment for BIDU remained in the ‘bearish’ zone.

U.S.-listed shares of Baidu, Inc. jumped nearly 5% in after-hours trading on Wednesday after the Chinese search and internet giant announced its maiden dividend and a fresh buyback plan.

Baidu said it expects to pay its first-ever dividend this year, though it will announce the amount and timing later. The company’s board approved a new share repurchase program for up to $5 billion that will run through December 2026.

“With our substantial cash reserves and sound financial management capabilities, we aim to create and continuously enhance long-term value for our shareholders through our proactive shareholder return initiatives,” the company said in a statement.

Baidu’s peer Alibaba approved a $25 billion stock repurchase program in 2024, while Tencent rolled out a plan to buy back $10 billion worth of company shares last year.

BIDU drew heavy buzz on Stocktwits late Wednesday, although retail sentiment for the stock continued to track ‘bearish,’ unchanged over the past week.

Several users cheered Baidu’s latest capital return policies. “A $5 billion buyback which is almost 10% of the company mind you and the first ever dividend. This is why you sit tight and be patient and make the big money!” said a user.

Another praised Baidu’s new CFO Haijian He, who was appointed last July. 

“Our new CFO has a lot of experience and knows exactly what he’s doing- he will guide BAIDU into the future growth and future market cap it deserves… Baidu's bull market has just begun!” this person said.

The plans come amid a sharp slide in Baidu’s shares. The stock has declined for five sessions straight, cumulatively losing about 14%. It has lagged peer Alibaba, whose stock has risen 60% over the past 12 months versus 53% gains in BIDU.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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