Baidu Unveils $5 Billion Buyback After Sales Beat Estimates

(Bloomberg) — Baidu Inc. announced a $5 billion share buyback after reporting better-than-expected revenue, reflecting how its cloud computing service is offsetting an advertising lull during China’s economic downturn.

Its shares gained 6% in pre-market U.S. trading. Sales held steady at 33.1 billion yuan ($4.8 billion) for the three months ended December, compared with expectations for 32.1 billion yuan. Net income almost tripled to about 5 billion yuan during the quarter, boosted by gains in its investments.