Baidu's stock plummeted 5.17% during intraday trading on Friday, following news that Cathie Wood's ARK Invest trimmed its position in the company and as the company announced plans to list its semiconductor unit in Hong Kong.
ARK Invest, led by prominent investor Cathie Wood, reduced its holdings in Baidu, according to portfolio adjustments disclosed on Thursday. This selling pressure from a major investor contributed to the stock's decline.
Additionally, Baidu's plan to spin off its AI chip operations, Kunlunxin Technology, through a Hong Kong IPO introduced uncertainty. The move could lead to increased complexity for investors and concerns about sustained margin pressure from heavy AI investments, despite the potential long-term benefits of separating the chip unit.