Baidu is gaining ground after topping estimates and revealing plans for a US IPO of its Netflix-like platform

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Baidu Jing Wang Baidu

  • Baidu 's stock was up 5% Wednesday after reporting an earnings beat and unveiling plans for a US initial public offering of its popular video platform, iQiyi.
  • Baidu reported revenue was up 29% year-over-year at $3.72 billion.
  • Watch Baidu's shares trade in real time here.

Shares of the Chinese internet-search firm Baidu rose 5% after it topped Wall Street estimates and revealed its plan to list its Netflix-like video-streaming platform on a US exchange.

The company said it submitted draft registration documents to the US Securities and Exchange Commission with plans to list its popular iQiyi video platform on a US exchange. It did not indicate the size of the initial public offering although it said it plans to remain a controlling shareholder of the company after the IPO. The value of the platform could be worth over $8 billion, according to Reuters.

A US listing would help shore up its financial muscle against Tencent Holdings and Alibaba , rivals which have lots of cash to spend to compete in online video content. The IPO would also become a new driver of revenue growth for Baidu, and offset risky bets made in autonomous driving .

The company posted quarterly earnings of 14.9 yuan ($2.35) per share and revenue of 23.6 billion yuan ($3.72 billion), beating analysts' forecasts of 13.36 yuan ($2.10) and 23 billion yuan ($3.6 billion). Its revenue was up 29% year-over-year.

Yet the company said its content costs rose 46% versus a year ago, mostly from iQiyi.

Baidu's stock was trading at $236.74 per share, and was down 1.8% for the year.

Read more about how giant companies are trying to compete with Netflix.

Get the latest Alibaba stock price here.

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