Baidu presents increasing mobile revenues and contracting margins

Mobile revenues came in at a record share of more than 10% of total revenues. On the other hand, margins contracted somewhat caused by larger traffic acquisition costs, content and bandwidth expenses, and promotional and R&D investments. But the market seemed to be more impressed by the good news and so Baidu (BIDU) gapped up.

However, the reaction of the analyst community was more mixed with some of them becoming cautious about the narrowing margins.