Baidu Recovers in Pre-Market Following Pentagon Error and Regulatory Scrutiny

Baidu shares rose 1.38% to $138.90 in pre-market trading as the company recovered from volatility following a retracted U.S. Pentagon labeling error. The stock is stabilizing ahead of its upcoming earnings report scheduled for February 26.

• The U.S. Pentagon briefly misidentified Baidu as a military collaborator on February 13, triggering a nearly 5% intraday drop and a legal investigation by Howard G. Smith.
• Chinese regulators summoned the company on February 15 regarding anti-competition compliance concerns.
• Baidu has integrated its OpenClaw AI into its search app, reaching 700 million users ahead of its quarterly financial results.