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Baidu shares slide after search engine company slashes revenue guidance

A Baidu's employee is belayed after climbing a climbing wall during his recreation time at Baidu's R&D center in Beijing
Kim Kyung-Hoon | Reuters

Baidu's stock fell 1.7 percent Tuesday after the company slashed its revenue guidance.

The Chinese search engine giant said it expects second-quarter sales to come in between $2.81 billion and $2.82 billion, down from to a previous guidance of between $3.12 billion and $3.19 billion. Baidu blamed the revision on new regulations and the reduction of sponsored links.

"Although a significant portion of our revenue is sacrificed, the steps we have taken to further bolster a healthy, safe and trustworthy online and offline ecosystem will result in long term benefit and reward for Baidu," said CEO Robin Li, in a statement.

Baidu's shares dropped 22 percent over the past 12 months.

BIDU 12-month performanceSource: FactSet