Chinese securities listed on U.S. exchanges are getting hit hard in the stock market today as China’s major indexes took their biggest one-day plunge in eight years. Alibaba (BABA) gapped down in above average volume, erasing gains from the last seven sessions. The e-commerce giant has tried to dig itself out of its downtrend over the last several months, but it’s still trading more than 30% below its all-time high of 120 set last November.
China search leader Baidu (BIDU) reports Q2 earnings after the close Monday. Analysts expect the company to continue to feel pressure on its profit margins in the wake of a weak showing in Q1. Baidu stock fell sharply in April after the company reported Q1 revenue below Wall Street expectations and gave soft Q2 guidance as it spent heavily to advance its mobile business in the face of competition from China e-commerce leader Alibaba Group (BABA)
Meeting industry expectations for muted earnings and sales, Yahoo (YHOO) late Tuesday posted Q2 EPS that feel short of Wall Street estimates, but revenue slightly beat consensus views. The struggling Internet search company also continues to pursue a proposed tax-free spinoff of its 15% stake in China Internet e-commerce giant Alibaba Group (BABA). “I’m extremely pleased with our achievements in Q2, with revenue growing 15% year-over-year, marking