|Bid||101.12 x 900|
|Ask||101.59 x 1300|
|Day's Range||101.55 - 105.56|
|52 Week Range||93.39 - 234.88|
|Beta (3Y Monthly)||1.58|
|PE Ratio (TTM)||7.94|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
No Chinese stock excites traders like Iqiyi (NASDSAQ:IQ).Source: Faizal Ramli / Shutterstock.com Iqiyi (pronounced Ee-KWEE-kwi) is a streaming video company focused on people whose primary device is a mobile phone. Its shows are short and highly interactive, perfect for a young worker on their bus ride or coffee break. It is very different from Netflix (NASDAQ:NFLX), although both have intense, passionate CEOs.Iqiyi is a partial spin-off of Baidu (NASDAQ:BIDU), a search engine and cloud that's the weakest of that country's three "Cloud Emperors." Both Iqiyi and Baidu are growing, but Iqiyi's losses remain ahead of expectations.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill For the quarter ending in June Iqiyi lost $339 million, 49 cents per share fully diluted, on revenue of $1 billion. Iqiyi lost almost the same amount during last year's second quarter, but with 33% less revenue. The numbers, and a ton of call options from traders betting on a different result, caused an overnight sell-off of 9%, but IQ stock quickly recovered. Iqiyi Is Not Like NetflixInvestors on Aug. 21 are going to read all about the drop, and less about the recovery.The recovery is based on the paid membership. Subscribers pay just $3 per month. Members also see ads, which they don't do on Netflix. Since IQ users are members these ads can be narrowly targeted.I have written about IQiyi before and questioned its business model. I also warned against buying its sharp rise this spring (which wasn't sustained).More recently, I have emphasized the difference between Iqiyi's model and that of Netflix. It's now No. 1 in the Chinese market, ahead of Tencent (OTCMKTS:TCEHY) and Alibaba (NASDAQ:BABA), whose parent companies are much bigger. Iqiyi Is Like NetflixBut in some ways Iqiyi is a lot like Netflix.As founder and CEO Tim Gong Yu noted in the company's recent earnings call, Iqiyi creates programs in-house that are tailored to its unique audiences, and spends money ahead of the market.Its earliest hits were reality games like "The Rap of China," "The Big Band," and "CZR," all variations of "American Idol." It is now paying more for scripted dramas like "The Thunder," a detective show, "Go Go Squid," a romantic comedy, and "Love and Destiny," a costume epic. Long-term liabilities have doubled, most of them covered by convertible notes.Iqiyi stock was also hit during its most recent quarter by an industry-wide slowdown in the advertising market. Advertising revenue fell 16%. Its subscriber growth depends on getting better wireless infrastructure in smaller Chinese cities. It also needs to keep customers once they get them, reducing churn and marketing costs per subscriber. Iqiyi is hugely popular among young people in China's biggest cities. Gong Yu admitted the company needs to raise its game among older people and those in smaller markets.Unlike Netflix, Iqiyi also has a games business. It recently acquired a game maker called Skymoons. The hope is that Skymoons programmers can deliver games based on Iqiyi shows, and game revenue was up 82% year over year. The Bottom Line on IQ StockIqiyi is still a speculative stock, but it does have a compelling story.Bulls will note that Iqiyi is still growing its customer base and that it has several different ways to monetize - memberships, advertising and gaming services. They will point to CEO Tim Gong Yu, who has his company ahead of rivals backed by much bigger companies. They will brush off losses as the price of growth, over 27% year-over-year for the period from January through June.Bears will question the China story, point to the abundant competition, and note that Iqiyi stock has yet to narrow its losses.Iqiyi is a game for younger, hungrier investors than me. Buy if you're young and can afford a loss, watch it closely, and your patience may be rewarded.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Iqiyi: Like Netflix, but Not Like Netflix appeared first on InvestorPlace.
Baidu's (BIDU) long-suffering bulls finally had a reason to smile Monday, as the Chinese online-search giant reported stronger-than-expected Q2 earnings. The numbers themselves weren’t great — revenue was nearly flat, only growing 1% since last year, while net income fell 56%. But analysts were expecting much worse on the profit-side, with EPS beating estimated by $0.55 and contributing to shares rising. The company still relies heavily on online ads sales, accounting for 73% of second-quarter sales, but faced considerable challenges during the quarter, including the US-China trade war, slowing Chinese economy and stronger competition. Nevertheless, 5-star Bank of America analyst Eddie Leung maintains his Buy rating and $181 price target on BIDU stock. For perspective, the stock closed at $108.72 yesterday, so this implies upside of nearly 66%.A deeper dive of Baidu’s report shows that trouble comes from its main revenue source, ads. Often dubbed “core” or “ex-iQiyi” revenue in reference to its video streaming platform, this stream was down 2% year-over-year as iQiyi saw a 50% rise in subscribers. This contributed to higher sales in Baidu's “other” category, which includes video and cloud. But the drop in core revenue doesn’t concern Leung, who expects a “similar dip” next quarter, as well. Leung’s lack of concern comes from other strong metrics. The analyst says, “Baidu’s core traffic is still growing, underpinned by its mobile apps which had daily users up 27% YoY and search queries up 20% YoY,” which makes him optimistic that the service is still strong. In other words, Baidu’s challenge is more related to business-factors, including competition and the trade war, than whether or not users value its service.Aside from search, Leung says Baidu’s report shows that users “are also spending more time on its platform, driven by richer content (e.g. self-media accounts, news, mini-video, knowledge-based content), more services (e.g. mini-program features), better targeting, and, to a [lesser] extent, IoT such as smart speakers and in-car Internet.” This continues to reinforce Leung’s position that the problem is not with Baidu’s offerings, but with the company’s ability to monetize. Looking ahead, the analyst is keeping his “growth assumption for its core sales at low- to mid-teen % in 2020 and 21,” as Baidu is “keeping [operating expenses] in check” in a time of slow revenue. Though Leung sees “margin upside of the core biz after stable op exp. (YoY) in 2Q19,” the analyst is cutting his 2020 and 2021 estimates. All in all, even as Baidu faces strong headwinds, including the US-China trade war and stiffer competition, the Wall Street community is optimistic on the stock. TipRanks analysis of 14 analyst ratings shows a consensus Moderate Buy rating, with eight analysts saying Buy, while six suggest Hold. The $144.32 average price target represents ~34% rise from current levels. (See BIDU's price targets and analyst ratings on TipRanks)
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. iBio (NYSE: IBIO ) shares were down 14% to ...
Baidu (BIDU) has been one of the weakest major Chinese technology stocks this year. However, the company's second-quarter results cheered up shareholders.
Moody's Investors Service says that Baidu Inc.'s modest 1H 2019 results will not immediately affect its A3 issuer or senior unsecured ratings, or the positive outlook on the ratings. "During Q2 2019, Baidu demonstrated its ability to prudently manage its investment needs and stabilize cash flow," says Lina Choi, a Moody's Senior Vice President.
The experienced executive will help the ad-buying platform tap into one of the world's most important markets for digital advertising.
The Chinese online-search giant posted better-than-expected earnings for the second quarter. The growth was mostly driven by strong membership in its video-streaming subsidiary iQiyi, while revenue in its online marketing segment declined from the year-ago period.
U.S. stock futures are circling unchanged this morning as markets digest the gains from a two-day rally.Source: Shutterstock Heading into the open, futures on the Dow Jones Industrial Average are up 0.01%, and S&P 500 futures are lower by 0.05%. Nasdaq-100 futures have shed 0.02%.Optimism permeated the options pits yesterday with put volume falling dramatically. Overall volume returned to average levels with 18.5 million calls and 15.3 million puts changing hands on the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver at the CBOE, the action was similar with calls leading the charge. The single-session equity put/call volume ratio plunged to 0.55 -- a one-month low. Meanwhile, the 10-day moving average continued its rollover by dropping to 0.73.Options traders zeroed in on Home Depot (NYSE:HD), Baidu (NASDAQ:BIDU) and Microsoft (NASDAQ:MSFT), among others.Let's take a closer look: Home Depot (HD)Home construction giant, Home Depot, released fiscal second-quarter earnings this morning. Investors are cheering the mixed results, and HD stock is up 2.5% at the time of this writing.The company missed sales estimates by a whisker and lowered its full-year forecasts citing trade war concerns, but still delivered a bottom-line beat for the quarter. Revenue came in at $30.84 billion versus estimates for $30.99 billion. Adjusted earnings-per-share were $3.17 versus $3.08 expected. * 10 Undervalued Stocks With Breakout Potential HD stock performed poorly over the past month alongside the broad market beatdown. But, with yesterday's 2% pop and this morning's additional gains, it's well on its way to reclaiming all that has been lost.If it holds, today's gap will propel HD back above its 20-day and 50-day moving average, clearing horizontal resistance in the process. The prior highs near $219 are the next upside target.On the options trading front, traders favored calls ahead of the release. Activity swelled to 384% of the average daily volume, with 98,041 total contracts traded. Calls accounted for 58% of the tally.The options board was pricing in a 3% gap, so this morning's 2.5% jump is just inside of expectations and should deliver a slight win to volatility sellers this morning. Baidu (BIDU)Baidu approached its second-quarter earnings release in desperate need of a win. Shares of the Chinese internet company are 63% off last year's high and have one of the worst looking charts in the market.Fortunately, Wall Street likes the results, and BIDU stock is up 10% premarket. This comes on the heels of yesterday's 7.8% rally. The company earned 10.11 yuan per share, nearly doubling estimates for 6.12 yuan. Revenue grew to 26.3 billion yuan compared to forecasts of 25.76 billion yuan.On the options trading front, calls were the hot ticket during yesterday's stock surge. Total activity climbed to 228% of the average daily volume, with 148,632 contracts traded; 66% of the trading came from call options alone.Given last quarter's dramatic gap post-earnings, implied volatility was sky-high ahead of this week's report. Premiums were pricing in a 10% move, which places this morning's jump right in-line with expectations. Microsoft (MSFT)Microsoft shares have led the tech sector all year long and remain one of the strongest stocks on the planet. Yesterday's 1.7% rally returned MSFT stock to the north side of its 20-day and 50-day moving average, healing virtually all the damage inflicted during the market's recent temper tantrum.With last month's record highs of $141.68 now a stone's throw away, MSFT has a shot at reaching new heights over the coming weeks. Its absolute and relative strength should make it a mainstay on your watchlist.On the options trading front, calls were the hot ticket on the session. Activity jumped to 151% of the average daily volume, with 379,711 total contracts traded. Calls added 85% to the session's sum.With uncertainty and fear easing, implied volatility fell to 25%, landing it at the 22nd percentile of its one-year range. Premiums are now pricing in daily moves of $2.14 or 1.5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Tuesdayas Vital Data: Home Depot, Baidu and Microsoft appeared first on InvestorPlace.
Shares of JD.com (NASDAQ:JD) soared on Tuesday. JD stock gained nearly 13% after its second-quarter earnings came in well ahead of analysts' average expectations.Source: Sundry Photography / Shutterstock.com And there's a simple reason why JD.com stock can keep climbing. Specifically, even after those gains, JD.com is up only 2% over the past month. That's because JD stock dropped 17% in five sessions a couple of weeks ago on fears of an escalating trade war, and Tuesday's gains only recaptured most of those losses.In other words, the good news from JD's earnings doesn't seem priced in. And that, in turn, suggests that JD could keep moving higher, as long as the company gets a little bit of outside help.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JD.com Crushes EstimatesCompared with analysts' average expectations, JD.com had a truly impressive quarter. Its earnings per share of 33 cents, excluding certain items, was 25 cents above the average estimate. That was the company's biggest earnings beat since its 2014 IPO. JD's year-over-year revenue growth of almost 23% was more than five percentage points better than the Street's average expectation.On an absolute basis, too, the results looked strong. The 22.9% increase in its sales was a notable acceleration from the 13% growth that JD.com reported in Q1. And its net income, excluding certain items, increased more than 600% year-over-year. * 10 Stocks Under $5 to Buy for Fall And it's how JD grew its sales and profits, not just by how much they increased, that helps the bull case on JD stock. When JD.com sold off last year, worries about a potential trade war and its impact on the Chinese economy were key drivers of the decline . But investors also fretted about the company's higher spending, which pushed profits to nearly zero in Q2 of 2018.In Q2 of this year, however, JD managed to drive strong growth while posting a modest increase in gross margin and, more importantly, controlling its operating expenses. Its fulfillment expenses only rose at half the rate of its revenue. Furthermore, its marketing spending increased less than 7%, and its general and administrative spending increased only 5%. JD.com's spending on technology jumped 34% year-over-year, but that line item amounted to less than 2.5% of its revenue.That focus on cost control is much-needed, and not just for JD.com. NetEase (NASDAQ:NTES) stock rallied after its Q2 results showed that its cost leverage had driven solid profit growth. Investors have wanted Chinese stocks to start showing some margin improvement, and NTES and JD.com both delivered.JD.com's Q2 results showed that the company is moving in the right direction. And so it's a little surprising that JD stock has not responded more favorably to the results. Why JD Stock Should Keep Moving HigherIt seems that JD.com stock can -- and maybe should -- move even higher. Again, the stock trades below where it did on July 30, before JD.com posted a blowout quarter and the U.S. decided to postpone additional tariffs. At this point, the outlook of JD stock seems to be stronger than it was two weeks ago, and yet JD stock is cheaper than it was then.And JD.com is getting close to cheap or at least, it's not quite that expensive. Heading into Q2, analysts' average 2019 EPS estimate for the full year was 68 cents. JD.com now has generated 66 cents in non-GAAP EPS in just the first two quarters of the year.JD can generate EPS of over $1 in 2019, which would put its price-earnings multiple below 30. In 2o20, that multiple could drop to the low- to mid-twenties.That multiple isn't necessarily that cheap in the context of Chinese stocks right now. Rival Alibaba (NYSE:BABA) trades at less than 20 times the average fiscal 2021 EPS estimate. Internet plays Baidu (NASDAQ:BIDU) and Weibo (NASDAQ:WB) are even cheaper.But JD.com's thin margins, still only 2%+ in Q2, still have much more room to increase. And thus there's more room for the company's profit to grow, making a higher multiple justified.JD does pose some risks. JD.com hasn't always been the most consistent performer. Sentiment toward Chinese stocks on the whole still looks shaky -- and that goes double for Chinese tech, as I wrote last month. As a result, in the near-term, JD stock might be choppy.Still, for Chinese bulls, JD stock looks awfully attractive. And there appears to be room and reason for its post-earnings gains to continue.As of this writing, Vince Martin did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post JD.com Stock Can Keep Climbing appeared first on InvestorPlace.
Baidu shares surging after the Chinese internet company reported fiscal 2nd quarter earnings that beat expectations. Yahoo Finance's Akiko Fujita and Jared Blikre discuss.