Baidu’s Search for Elusive Profit Growth
AARON BACK
Updated Feb. 27, 2014 11:41 a.m. ET
China’s online-search behemoth Baidu BIDU +3.48% is doing what it must to stay competitive. But in a theme Chinese Internet investors should get used to, profit growth isn’t going to be as bubbly as previously hoped.

That was the company’s message to investors Thursday. Revenue surged by 50% from a year earlier in the fourth quarter while profits were flat, as expected. But in a conference call with analysts, Baidu Chief Financial Officer Jennifer Li dropped a bombshell, saying the company doesn’t expect any increase in profit this year as it continues to invest. Pity the analysts, who according to FactSet had optimistically forecast a 31% rise in 2014 net profit. Now they are asking where the money will be spent. Read more of this post