Stock Track | Baidu Soars 5.04% in Pre-Market Trading Following $5 Billion Share Buyback and Inaugural Dividend Announcement

Stock Track02-05 17:35

Baidu Inc.'s stock experienced a significant pre-market surge, rising 5.04% in early trading. The movement occurred ahead of the regular trading session, reflecting strong investor reaction to a major corporate announcement from the Chinese tech giant.

The price appreciation follows Baidu's disclosure that its Board of Directors has approved a new $5 billion share repurchase program effective through December 31, 2028. Additionally, the company announced the adoption of its first-ever dividend policy, with the board expecting to declare the inaugural payment in 2026. These initiatives are designed to enhance shareholder returns and signal confidence in the company's substantial cash reserves and sound financial management.

Analysts noted that the commitment to return value to shareholders through both buybacks and dividends could further unlock Baidu's valuation potential. The move represents a shift toward more regular and transparent shareholder returns as the company continues to invest in artificial intelligence and autonomous driving technologies while managing a slower advertising business environment.

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