BIDUNEUTRAL

Gross Margin

38.9%

Higher than 17% of Communication Services sector peers

Updated 584h ago

Sector Performance

17th percentile

BIDU

38.9%

Sector Median

51.9%

Sector Avg

56.1%

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Deep Analysis

Baidu's gross margin of 38.9% means that for every dollar of revenue, the company keeps about 38.9 cents after paying the direct costs of producing its services.

This figure sits well below the Communication Services sector median of 51.9%, placing Baidu in the 17th percentile among its peers—indicating it trails most competitors in cost efficiency. No year-over-year, quarter-over-quarter, or eight-quarter trend data are available, so there is no basis to assess whether margins are improving or worsening. The combination of a low margin relative to the sector and the absence of any trend creates uncertainty: the current level suggests potential competitive pressure on pricing or costs, but without a direction, investors cannot gauge if this is a persistent weakness. This mixed signal aligns with the overall NEUTRAL verdict, as the low gross margin alone does not strongly support a bullish or bearish case when no trend is present to confirm a worsening or recovery.

Frequently Asked Questions

What does the Gross Margin tell investors about BIDU?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BIDU's Gross Margin compare to its sector?

BIDU's Gross Margin of 38.9% compares to a Communication Services sector median of 51.9%, placing it in the 17th percentile.

Who are BIDU's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: NFLX (51.9%), DASH (50.6%), TWTR (54.0%), TWLO (48.6%), WBD (47.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.