Analysts say Baidu must diversify further

Baidu Inc needs to do more to diversity its business as the Chinese search engine firm falls behind domestic peers Alibaba Group Holding Ltd and Tencent Holdings Ltd in revenue and profit, analysts said on Monday.

Such efforts are of urgent importance to help Baidu safeguard its position as one of China's big three internet giants, they added.

In the second quarter ended June, Baidu saw 34 percent plunge in net income, which declined to $363 million and was less than one-fourth of that of Tencent, one of the most profitable tech firms in China.