Chinese stocks: How Baidu and JD.com react to Q1 earnings

Shares of Baidu (BIDU) are falling slightly after the company posted its first-quarter earnings, revealing revenue of $4.37 billion beating consensus estimates of $4.32 billion (Chinese yuan converted to US dollar). In addition, Baidu's online marketing revenue grew 3% year-over-year to $2.36 billion.

JD.com (JD) stock has been trending up over the past month, with the company beating estimates for its first quarter with revenue of $36.02 billion, a 7% growth year-over-year, versus an expected $35.62 billion (Chinese yuan converted to US dollar). Additionally, the company's net service revenues grew 8.8% year-over-year to $7.14 billion.

Catalysts Anchors Madison Mills and Seana Smith break down the latest developments with these two Chinese companies and how they may operate moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video transcript

Shares of Baidu following this morning down a little over 1% right now.

This comes after the company reported revenue growing at the slowest pace in more than a year.

They did be forecast estimates driven by recovery in a sales cloud sales as well.

But it's interesting to see by moving to the downside after their positive move to the upside earlier today, Shana.

Another stock that we're following is the Chinese retailer jd.com which beat their estimates after price cut and coupons boosted their sales.

And I think it's possible that J Ds move to the upside is weighing a little bit on names like Baidu and also 10 Cent as we head into the next session of the day here when it comes to jd.com just just to start there because I think this is really a good bellwether of consumer spending right now or the health of the consumer within China.

We talk so much about the recovery that is taking place there and the sluggish recovery that is taking place so we can take a look at at least JD dot com's results yet 7% rise in revenue that beat the street's expectations.

They were offering more deals, they did slash prices.

They're doing everything they can to fend off that increased competition from the other larger players within that space.

So right now, at least that is helping to drive some of the results that we are seeing for jd.com in its most recent quarter.

Then you compare that to what we saw at Baidu and yes, there is reason to be a bit optimistic when it comes to that profit beat much higher than what the street was anticipated.

But I think the questions surrounding a i surrounding autonomous driving technology surrounding the investment there, that might be what is holding back.

Baidu just a little bit here when you take a look at Baidu's cores here adjusted operating margin that was flat, holding flat at 23%.

So that is being called out a little bit here in this instant analyst reaction that we are getting to these results.

But again, two trending figures here at Yahoo Finance, that's giving us a better idea of the state of the economy over in China right now.