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Baidu ’s ( BIDU ) stock fell again Monday amid a broad sell-off on Shanghai’s stock exchange after China’s biggest Internet search firm announced new measures in response to a student’s death and government probe into health care advertising. U.S.-listed shares of Baidu fell 3.2% to 168.34 in morning trading on the stock market today . The stock tumbled 10.5% last week on the China probe, but had closed Friday just above its 200-day moving average. IBD’s Take: How healthy is Baidu’s stock and how does it compare to its peers? Find out at IBD Stock Checkup The Shanghai stock exchange fell 2.7% on Monday. Baidu said it would create a $150 million fund to fight Internet fraud and limit the number of sponsored posts to 30% of the search results page. The Cyberspace Administration of China (CAC) has reportedly set up a task force to probe Baidu amid mounting criticism over its prominent placement of sponsored health care services providers in its search results. Wei Zexi, a 21-year-old university student, died last month of a rare form of cancer. He had used the Chinese search engine to look for treatment for his cancer and later died after receiving care at a hospital he had found on Baidu search results. According to Nomura Securities , Baidu garners 20% to 30% of its search revenue from health care. In 2010, China’s state-run television accused Baidu of promoting counterfeit drugs through its search engine. Scalper1 News
Scalper1 News